LABOR   AND   ADMINISTRATION 


THE  MACMILLAN  COMPANY 

NEW  YORK    •    BOSTON  •    CHICAGO  •    DALLAS 
ATLANTA  •   SAN  FRANCISCO 

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THE  MACMILLAN  CO.  OF  CANADA,  LTD. 

TORONTO 


LABOR 


AND 


ADMINISTRATION 


BY 


JOHN   R.  COMMONS 

PROFESSOR   OF   POLITICAL  ECONOMY,    UNIVERSITY  OF   WISCONSIN 

FORMERLY    DIRECTOR    OF    THE    MILWAUKEE    BUREAU    OF 

ECONOMY  AND  EFFICIENCY  AND  MEMBER  OF  THE 

INDUSTRIAL   COMMISSION    OF    WISCONSIN 


THE   MACMILLAN   COMPANY 
1913 

All  rights  reserved 


COPYRIGHT,  1913, 
BY  THE  MACMILLAN  COMPANY. 

Set  up  and  electrotyped.    Published  October,  1913. 


FERRIS    PRINTING    COMPANY 
NEW  YORK.  N.  Y.,  U.  S.  A. 


INTRODUCTION 

THE  history  of  labor  laws  and  strikes  has  this  in  com- 
mon to  both  —  laws  become  dead  letters ;  the  victories 
of  strikes  are  nibbled  away.  Too  much  was  expected 
even  of  those  preparatory  labor  laws,  universal  suffrage 
and  universal  education.  Amateur  faith  in  laws  and 
strikes  weakens  with  experience.  A  law  creates  an 
abstract  right  —  an  empty  ideal.  A  strike  may  be  a 
burst  of  enthusiasm,  then  disorganization.  Some  philos- 
ophizers  fall  back  on  the  individual's  moral  character. 
Little,  they  think,  can  be  done  by  law  or  unions.  There 
are  others  who  inquire  how  to  draft  and  enforce  the  laws, 
how  to  keep  the  winnings  of  strikes  —  in  short,  how  to 
connect  ideals  with  efficiency. 

These  are  the  awakening  questions  of  the  past  decade, 
and  the  subject  of  this  book.  Attention  is  shifting  from 
laws  to  the  means  of  enforcing  them  —  from  strikes  to 
the  unions  that  safeguard  the  gains  —  from  the  rights  of 
labor  to  the  protection  of  its  rights. 

Here  is  a  field  for  the  student  and  economist  —  not 
the  "  friend  of  labor  "  who  paints  an  abstract  working- 
man,  but  the  utilitarian  idealist,  who  sees  them  all  as 
they  are ;  not  the  curious  collector  of  facts  and  statistics, 
but  the  one  who  measures  the  facts  and  builds  them  into 
a  foundation  and  structure.  His  constructive  problem  is 
not  so  much  the  law  and  its  abstract  rights,  as  administra- 
tion and  its  concrete  results  —  not  so  much  the  struggle 


vi  INTRODUCTION 

of  a  class  to  dominate  others,  as  a  working  partnership 
of  classes  in  government  and  industry  —  not  so  much 
the  spectacular  wage-bargaining  of  strikes,  as  the  con- 
tinuous organization  of  capital  and  labor  for  dealing 
justly  with  the  millions  of  little  wage-bargains  that  begin 
and  end  every  day. 

These  chapters  were  written  partly  as  a  student, 
partly  as  a  lecturer  to  university  classes,  and  somewhat 
as  a  participant.  They  came  out  in  printed  form  when_ 
the  subject  was  warm,  or  when  some  suggesting  editor, 
student,  or  audience  asked  for  them.  Through  them 
run  the  notions  of  utilitarian  idealism,  constructive  re- 
search, class  partnership  and  administrative  efficiency  — 
a  programme  of  progressive  labor  within  social  organi- 
zation. 

If  Wisconsin  dominates  the  book,  it  is  because  I  can 
best  speak  of  what  I  see  and  know  in  Wisconsin:  Com- 
ing to  the  state  in  1904,  La  Follette,  a  leader  who  studied 
his  subject,  was  just  winning  a  ten-year  battle  for  the 
people's  control  of  their  government.  Six  years  later, 
the  equally  forceful  Victor  Berger  led  his  "  class  con- 
scious "  wage-earners  into  a  partial  control  of  Mil- 
waukee. Here  both  progressivism  and  socialism  won 
their  first  notable  victories  in  America.  Here,  too,  was 
a  unique  university  —  utilitarian,  idealistic  and  free. 
Here  investigation  accompanied  action.  Here  the  people 
seem  to  think  that  democracy  must  be  efficient  if  plutoc- 
racy is  to  stay  out.  Surely,  ten  such  interesting  years 
in  Wisconsin  would  be  expected  to  color  the  book. 

For  opportunity  to  prepare  the  articles  I  am  indebted 
to  the  University  of  Wisconsin,  the  Industrial  Commis- 
sion of  Wisconsin,  the  American  Bureau  of  Industrial 
Research,  the  National  Civic  Federation,  the  Carnegie 


INTRODUCTION  vii 

Institution  of  Washington,  and  the  Pittsburgh  Survey. 
For  permission  to  use  them  I  am  indebted  to  the  Inter- 
collegiate Magazine,  Journal  of  Home  Economics,  The 
Survey,  Political  Science  Quarterly,  Quarterly  Journal  of 
Economics,  American  Journal  of  Sociology,  Union  Labor 
Advocate,  The  Outlook,  The  Chautauquan,  La  Follette's 
Magazine,  American  Economic  Association,  American 
Statistical  Association,  American  Academy  of  Political 
and  Social  Science,  American  Association  for  Labor 
Legislation. 

JOHN  R.  COMMONS. 

MADISON,  WISCONSIN, 
July,  1913. 


TABLE   OF   CONTENTS 


INTRODUCTION 

CHAPTER 


PAGE 

V 


I.    UTILITARIAN  IDEALISM 1 

II.    CONSTRUCTIVE  RESEARCH 7 

STANDARDIZING  THE  HOME 14 

AN  IDEALISTIC  INTERPRETATION  OF  HISTORY     .        .      25 
ECONOMISTS  AND  CLASS  PARTNERSHIP         ...      51 

CLASS  CONFLICT 71 

THE  UNION  SHOP 85 

UNIONS  OF  PUBLIC  EMPLOYEES 106 

120 
135 
149 
158 
195 
219 
267 
297 


RESTRICTIONS  BY  TRADE  UNIONS         . 

UNIONS  AND  EFFICIENCY 

EUROPEAN  AND  AMERICAN  UNIONS      . 

LABOR  AND  MUNICIPAL  POLITICS         .... 

MILWAUKEE  BUREAU  OF  ECONOMY  AND  EFFICIENCY 
XIV.     AMERICAN  SHOEMAKERS,  1648  TO  1895 
XV.    THE  'LONGSHOREMEN  OF  THE  GREAT  LAKES 
XVI.    THE  MUSICIANS  OF  ST.  Louis  AND  NEW  YORK 


I/ XVII.    WAGE-EARNERS  OF  PITTSBURGH 324 


XVIII.  TARIFF  AND  LABOR 

XIX.  A  STATE  SYSTEM  OF  EMPLOYMENT  OFFICES 

XX.  INDUSTRIAL  EDUCATION  IN  WISCONSIN 

XXI.  THE  INDUSTRIAL  COMMISSION  OF  WISCONSIN 

XXII.  INVESTIGATION  AND  ADMINISTRATION  . 


350 
358 
363 
382 
395 


ix 


LABOR   AND   ADMINISTRATION 


LABOR  AND  ADMINISTRATION 


CHAPTER  I 

UTILITARIAN  IDEALISM  * 

"MATERIALISTIC,"  "utilitarian,"  "job-getter,"  "does 
U.  W.  spell  cow,"  "butter-fat  university"  —  these  are 
some  of  the  epithets  to  which  we  are  reconciling  our- 
selves at  Wisconsin.  It  may  be  that  we  have  sacrificed 
a  kind  of  idealism,  but  if  so,  we  are  part  of  a  movement 
that  is  exalting  another  kind.  Let  us  call  it  utilitarian 
idealism. 

By  idealism  seems  to  be  meant  the  yearning  for  per- 
fection above  and  beyond  the  mere  grind  and  hustle  for 
necessities,  luxuries  and  wealth.  It  is  devotion  to  "the 
good,  the  true,  the  beautiful."  It  is  esthetics  —  the 
ideal  beauty  of  material  things,  unfolded  to  us  in  the 
fine  arts  of  painting,  sculpture,  architecture,  literature. 
It  is  ethics  —  the  perfect  goodness  of  human  beings 
towards  each  other,  revealed  in  philosophy  and  religion. 
It  is  pure  science,  with  abstract  mathematics  and  its 
imaginary  lines  and  points  as  the  ideally  "true." 

It  is  not  a  new  idea  that  the  idealism  of  art  and  science 
came  into  the  modern  world  from  ancient  Greece,  where 
three-fourths  of  the  population  were  slaves  or  un- 
franchised  merchants  and  artisans,  and  where  what  we 
know  as  "work"  and  "business"  were  despised.  Art, 

1  Intercollegiate  Magazine,  December,  1909,  pp.  267-269. 

B  I 


i  AND  ADMINISTRATION 

philosophy,  science,  were  something  apart  from  the  work- 
ing population.  The  farmer,  the  merchant,  the  laborer, 
were  too  base  and  ignoble  to  understand  or  appreciate 
them.  Slavery  was  to  the  Greeks  what  machinery  is 
to  us.  It  did  their  work  and  left  the  citizens  free  to 
cultivate  their  souls  and  do  artistic  work.  Our  word 
" scholar"  is  merely  the  Greek  word  "leisure."  One- 
fourth  of  the  Greeks  were  idealists  without  utilitarian- 
ism, and  three-fourths  were  utilitarians  without  idealism. 

Likewise,  our  ethics  came  to  us  from  ancient  Pales- 
tine, whose  people  were  a  conquered  and  subject  race, 
paying  tribute  to  the  wealthy  men  of  Egypt,  Babylon, 
Greece  or  Rome.  Its  admonitions  of  righteousness, 
equality,  love,  were  directed  to  the  service  of  God  and 
not  to  Caesar  or  men  of  wealth.  A  religious  ethics, 
that  united  the  slaves  and  masses  of  the  Roman  Empire, 
became  corrupt  or  ascetic,  or  subservient  to  wealth, 
after  it  had  conquered  the  empire.  It  was  the  ideal- 
ism of  hapless  workers  who  looked  to  the  next  world  for 
the  perfection  of  ethics,  and  not  that  of  citizens  who 
demand  it  in  this  world. 

But  in  our  modern  democracy  all  are  citizens  and  all 
are  workers.  Even  our  idealists  who  cultivate  art, 
philosophy  and  science  are  not  above  taking  pay  for 
what  they  now  call  "work"  -something  the  Greeks 
would  have  thought  disgraceful  in  a  scholar.  With 
idealism  down  on  this  utilitarian  basis,  the  Greeks  would 
have  thought  us  quite  supercilious  had  they  seen  us  laugh 
at  our  utilitarians.  But  our  utilitarians  are  really 
idealists,  if  we  only  knew  where  to  look. 

Talk  with  the  ordinary  workingman,  farmer  or  mer- 
chant about  his  work.  If  he  is  not  crushed  down  too 
much  by  poverty  or  overwork,  if  he  is  not  a  criminal  or 


UTILITARIAN   IDEALISM  3 

grafter,  if  he  has  had  something  of  common  education, 
he  first  of  all  tells  you  of  the  great  importance  of  his  work 
to  society.  From  the  garbage-collector  or  the  ditch- 
digger,  who  lets  you  know  how  your  comfort  or  health 
depends  on  him,  all  the  way  up  to  Rockefeller,  who  refers 
to  the  millions  of  homes  now  lighted  where  once  was 
darkness  and  the  thousands  of  workmen  furnished  em- 
ployment, you  find  the  instinctive  idealism  of  service 
to  others.  What  more  could  Socrates  or  Phidias  boast, 
or  Jesus  and  Paul  admonish  ? 

Next  he  tells  you  how  particular  his  work  is  —  how 
it  requires  skill,  intelligence,  experience,  careful  attention 
and  just  the  knack  that  you  didn't  know  about  in  order 
to  do  it  right.  Could  Praxiteles  with  his  statues,  or 
Euripides  with  his  dramas,  appreciate  the  idealism  of 
perfection  more  correctly  than  this  ? 

Yes,  our  so-called  utilitarianism  has  the  elements  and 
the  aspirations  of  idealism  in  about  as  large  proportions 
as  the  idealism  of  Greece.  There  were  thousands  of 
leisured  Greeks,  but  only  a  few  like  Socrates  or  Phidias. 
The  modern  problem  is  how  to  combine  idealism  and 
utilitarianism  in  the  same  persons.  The  workingman  or 
farmer  usually  has  a  third  point  to  which  he  calls  your 
attention  —  he  is  not  paid  enough,  and  his  hours  of  labor 
are  too  long.  The  Greeks  separated  the  idealists  from  the 
utilitarians,  but  they  did  it  by  first  separating  one  class 
with  all  the  leisure  from  another  class  with  all  the  work. 
To  combine  idealism  and  utilitarianism,  our  modern 
worker  asks  that  we  combine  leisure  and  work  in  the 
same  person.  This  means  shorter  hours  of  work  and 
more  opportunity  for  education.  This  is  the  first 
great  problem  of  modern  democracy,  —  the  industrial 
problem,  —  how  to  get  a  fair  living  by  reasonable  hours 


4  LABOR   AND   ADMINISTRATION 

of  work,  leaving  enough  leisure  for  both  childhood  and 
manhood. 

The  second  problem  is  education,  —  the  use  of  leisure. 
Leisure  is  opportunity.  It  may  be  used  or  abused. 
What  kind  of  education  is  called  for?  It  is  that  which 
will  develop  the  idealism  of  work  —  now  instinctive 
but  too  often  suppressed.  The  ethical  ideal  of  work 
is  service  to  others ;  the  esthetic  ideal  is  a  perfect  prod- 
uct. 

He  serves  others  who  gives  more  than  he  receives. 
The  value  to  society  and  the  cost  to  one's  self  of  one's 
work  ought  to  be  greater  than  the  pay  that  one  gets  for 
it.  Otherwise  one  is  a  pensioner,  parasite,  grafter, 
embezzler.  The  Greeks  and  Romans  occupied  much 
of  their  leisure  discussing  whether  happiness  or  justice 
was  the  true  object  in  life.  The  contest  was  fruitless, 
because  neither  the  Epicureans  nor  Stoics  had  to  work. 
Work  was  done  through  coercion  and  had  no  reference 
to  happiness,  justice  or  ethics.  But  when  the  worker 
has  leisure,  his  work  becomes  ethical  and  should  be 
guided  by  ideals.  To  make  and  sell  a  product  of  more 
value  to  society  and  more  cost  to  himself  than  the  price 
he  gets  for  it  becomes  the  ethics  of  utilitarian  idealism. 

This  is  perhaps  a  humdrum  kind  of  ethics.  It  does 
not  stir  up  the  feelings  like  architecture  or  dramatics  or 
oratory.  But,  nevertheless,  it  is  that  which  the  modern 
citizen,  who  has  to  work,  shares  in  common  with  the 
world's  idealists  who  did  not  have  to  work.  Sophocles, 
Virgil,  Shakespeare  and  the  early  religious  teachers  were 
never  paid  what  their  work  was  worth.  Socrates,  we 
would  call  an  impecunious  loafer  around  town,  with 
his  hand  out  for  gifts,  not  pay.  He  and  they  got  their 
living,  their  opportunity,  and  their  ethical  or  esthetic 


UTILITARIAN  IDEALISM  5 

satisfaction,  as  they  went  along  —  the  rest  of  their  pay 
they  took  out  in  applause  —  or  in  the  feeling  that  they 
deserved  applause. 

The  idealism  of  work  craves  exactly  that  kind  of  pay, 
—  it  is  the  business  of  utilitarian  education  to  show  how 
really  satisfying  it  is.  Wisconsin  is  doubtless  a  "  job- 
getter/' —  even  idealists  must  get  a  living  first  of  all,  — • 
and  there  are  doubtless  too  many  students  and  graduates 
who  care  for  nothing  more  than  what  they  can  make 
out  of  a  job.  But,  nevertheless,  it  would  be  hard  to 
find  an  institution,  ancient  or  contemporary,  that  has 
inspired  a  larger  share  of  its  constituency  with  the  idealism 
of  social  and  public  service. 

Esthetic  idealism  is  the  ideal  of  a  perfect  product. 
This  is  one  object  of  our  utilitarianism.  I  do  not  see 
why  there  is  not  as  much  idealism  of  its  kind  in  breeding 
a  perfect  animal  or  a  Wisconsin  No.  7  ear  of  corn,  or 
in  devising  an  absolutely  exact  instrument  for  measuring 
a  thousand  cubic  feet  of  gas,  or  for  measuring  exactly 
the  amount  of  butter  or  casein  in  milk,  as  there  is  in 
chipping  out  a  Venus  de  Milo  or  erecting  a  Parthenon. 
In  fact,  our  agricultural  education  starts  off  at  the  begin- 
ning of  the  freshman  year  by  requiring  the  student  to 
picture  in  his  mind  the  ideally  perfect  horse,  or  cow,  or 
ear  of  corn,  and  then  to  cultivate  his  observation  and 
judgment  by  showing  exactly  where  and  how  far  some 
actual  cow  or  corn  falls  short  of  the  ideal.  This  is  the 
"  score-card  "  method  of  instruction,  which  I  think  might 
well  be  adopted  by  idealists.  Of  course  a  cow  is  just 
a  cow,  and  can  never  become  a  Winged  Victory.  But 
within  her  field  of  human  endeavor  she  is  capable  of 
approaching  an  ideal.  And,  more  than  that,  she  is  an 
ideal  that  every  farmer  and  farmer's  boy  —  the  despised 


6  LABOR   AND   ADMINISTRATION 

slaves  and  helots  of  Greece  —  can  aspire  to.  But,  most 
of  all,  this  idealism  of  a  perfect  product  is  the  only  way 
of  rendering  a  perfect  service  to  others.  The  same  is 
true  of  all  other  branches  of  applied  science.  They  are 
all  teachers  of  esthetics  to  the  common  man.  And  it  is 
only  as  a  science  gets  applied  that  its  idealism  gets 
democratic.  Utilitarianism  is  the  democracy  of  idealism. 
I  am  not  so  much  discouraged  by  Wisconsin's  "  ma- 
terialism." Wisconsin  is  not  an  accident  —  it  is  as 
inevitable  as  democracy.  It  makes  a  science  and  an 
art  out  of  what  to  the  Greeks  was  degrading  toil.  It 
should  make  an  ethics  of  service  to  others  out  of  science, 
art,  wealth  and  toil.  It  has  not  finished  its  work  — 
it  is  really  only  feeling  its  way  in  response  to  the  demands 
of  democracy.  It  has  not  as  yet  given  a  conclusive 
answer  to  the  idealists,  nor  enlisted  them  all  in  its 
errand.  It  has  only  challenged  them  to  help  out. 
The  methods  of  applied  science,  now  inaugurated  in 
agriculture,  engineering  and  business  need  to  be  extended 
to  sociology,  law,  philosophy,  ethics,  history  and  litera- 
ture, where  the  idealists  prevail.  By  taking  pay  for 
their  work  they  have  themselves  become  grossly  ma- 
terialistic, from  the  Greek  or  Socratic  standpoint.  For 
this  reason  they  are  better  adapted  to  help  in  the  grand 
mission  of  adding  imagination  to  the  kind  of  work  by 
which  others  must  earn  their  living.  This  is  utilitarian 
idealism. 


CHAPTER  II 

CONSTRUCTIVE  RESEARCH1 

CONSTRUCTIVE  research  is  that  sort  of  investigation  that 
goes  along  with  administration  and  is  designed  to  improve 
it.  Other  forms  may  be  called  academic  and  journalistic. 

The  motto  of  academic  research  is  "  truth  for  its  own 
sake."  It  disregards  the  practical  uses.  But  it  is 
fundamental  and  first  in  order.  In  the  infancy  of  a 
science,  when  its  practical  applications  are  unsuspected, 
or  on  the  fringes  of  a  science,  where  the  applications  are 
in  doubt,  investigation  can  have  no  other  aim  than  the 
discovery  of  truth  for  its  own  sake.  That  is  the  period 
when  principles  are  at  stake ;  when  ages  of  error  are 
exposed  and  the  world  is  given  a  new  start.  Galileo, 
experimenting  with  the  inclined  plane ;  Volta,  with 
the  frog's  leg ;  Darwin  on  heredity ;  Newton  on  gravita- 
tion, —  these  and  others  who  search  for  the  foundations 
of  science  can  have  but  little  notion  of  its  utility.  The 
science  is  yet  in  its  infancy,  and  human  interests  have 
not  grown  up  around  it  nor  learned  to  depend  upon  it, 
and  demand  results.  The  investigator  is  alone.  He  is 
led  on  by  his  love  of  truth.  Academic  research  must 
always  have  the  first  place.  It  is  pioneer  —  it  makes 
epochs. 

But  when  the  principles  of  a  science  have  been  ac- 
cepted ;  when  its  applications  are  being  made ;  when  the 
world  is  looking  for  its  utility;  when  hundreds  of  in- 

1  Address  before  New  York  School  of  Philanthropy,  September,  1907. 

7 


8  LABOR   AND   ADMINISTRATION 

vestigators  have  fallen  in  line,  research  must  set  up  a 
new  aim,  —  truth  for  the  sake  of  utility.  This  is  true 
also  of  art.  Art  for  art's  sake  is  first,  but  great  literary 
artists  of  our  day,  like  Tolstoi  or  Millet,  are  artists  also 
for  the  sake  of  social  reform  or  revolution. 

The  science  of  political  economy  is  now  called  upon 
for  something  practical.  Legislation  has  been  left  to 
lawyers  and  politicians.  The  people  turn  to  economists 
and  sociologists,  but  do  not  find  what  they  need.  The 
regulation  of  public  utilities,  the  revision  of  currency 
and  tariff  laws,  the  relations  of  capital  and  labor,  are 
economic  as  well  as  legal  or  political  questions.  On 
these  and  other  subjects  the  science  of  economics  remains 
academic,  after  it  has  been  summoned  to  the  work  of 
construction. 

Another  form  of  research  that  has  its  place  is  that  of 
agitation,  exposure,  diagnosis,  journalism.  Some  of  it 
has  been  called  muck-raking  —  even  by  those  who  are 
raked.  Much  of  it  has  been  done  with  ability  and 
conscience.  We  may  call  it  one-sided,  but  it  is  often 
no  more  so  than  the  diagnosis  of  a  physician  who  dis- 
covers your  appendicitis.  Agitational  research  is  as 
necessary  as  academic  research.  It  awakens  the  public. 
It  carries  conviction  that  something  must  be  done. 
Economic  science  has  left  this  field  to  journalists.  The 
reasons  are  found  in  its  academic  precautions.  The 
magazine  writer  has  been  forced  to  pioneer  without  its 
help,  and  to  work  out  his  methods  and  principles  as  he 
goes  along. 

The  service  of  exposure  is  in  locating  the  disease. 
It  does  not  cure  it  or  prevent  it.  This  is  the  work  of 
constructive  research.  The  two  are  related.  One  shows 
the  need  of  the  other  and  leads  to  it.  A  model  of  con- 


CONSTRUCTIVE   RESEARCH  9 

structive  research  is  found  in  the  modern  trust,  or 
syndicate,  operating  a  number  of  plants  that  produce 
a  similar  product.  Look  at  the  organization  of  one  of 
these  "  combines  "  both  as  a  plan  of  administration  and 
an  instrument  of  investigation.  It  is  divided  into 
departments  according  to  the  nature  of  the  work  and 
the  problems.  In  each  department  is  a  responsible 
head,  and  under  him  are  subordinates  in  the  different 
plants.  Each  subordinate  is  responsible  in  his  own 
field.  Every  subordinate  has  before  him  the  opportunity 
of  promotion,  or  increase  of  salary.  But  promotion  is 
not  haphazard  nor  based  on  seniority.  It  is  based  on 
results,  and  these  results  are  all  reduced  to  a  single 
economic  basis,  the  reduction  in  cost  of  producing  and 
selling  the  unit  of  product.  The  man  who  can  show  the 
best  results,  no  matter  how  young  or  far  down  the  line, 
is  jumped  over  the  heads  of  others.  Those  who  do  not 
get  results  are  reduced.  A  stimulant  is  given  to  every 
man. 

J  So  it  is  in  economic  investigation.  When  we  want 
hundreds  of  investigators  to  devote  their  energies  to  the 
same  object,  we  must  appeal  to  their  interest  or  rivalry 
—  we  must  make  them  compete  with  each  other. 

In  order  that  individuals  may  be  compared  with  one 
another,  the  trusts  have  devised  uniform  accounts  and 
units  of  measurement.  Every  item  of  cost  is  classified 
according  to  its  proper  relations.  When  these  com- 
parative statements  come  into  headquarters  each  month, 
and  are  tabulated  and  distributed  back  to  the  several 
managers,  it  is  possible  for  all  to  know  exactly  at  what 
point  somebody  is  going  ahead  and  somebody  is  falling 
behind.  "  Your  labor  cost  has  increased  one  cent  a 
thousand  cubic  feet."  "  Your  experiment  on  coal  has 


io  LABOR   AND    ADMINISTRATION 

cut  down  the  cost  two  cents  a  thousand."  Month  after 
month  these  questions  and  results  are  circulating  through 
the  entire  force  of  managers  and  investigators.  Down 
to  the  minutest  point  each  responsible  man  is  put  on 
record  under  a  comparison  with  his  fellows  so  precise 
that  he  cannot  escape  if  deficient,  nor  fail  if  proficient. 

Add  to  this  the  encouragement  of  individual  research 
under  the  supervision  of  a  central  laboratory.  Some 
individual  may  have  a  line  of  experiment  which  he  wishes 
to  undertake.  He  submits  his  plans  to  the  laboratory 
chiefs.  They  authorize 'him  to  go  ahead,  and  they  furnish 
him  the  facilities  for  doing  so.  His  experiment  is  worked 
out  by  himself,  then  tested  by  others,  then  adopted  by  all. 
Originality,  initiative,  investigation,  are  stimulated  and 
are  directed  towards  the  point  where  they  will  count 
most. 

This  is  constructive  research.  It  goes  along  with 
actual  administration.  It  carries  out  on  a  systematic 
and  scientific  basis  what  the  common  man  is  doing  in 
his  own  way  every  day.  Agricultural  colleges  used  to 
investigate  the  chemistry  of  different  kinds  of  food- 
stuffs and  the  physiology  of  the  live  stock.  Now  they 
weigh  different  kinds  of  food,  and  they  weigh  the  hog 
before  and  after  taking.  They  do  what  the  hard-headed 
farmer  would  do  if  he  had  no  chemistry  or  physiology. 
The  agricultural  experiment  stations  serve  as  central 
laboratories  for  thousands  of  isolated  farmers.  They 
do  the  same  kind  of  experimenting  that  the  farmers  do, 
but  they  do  it  with  instruments  of  exact  measurement. 
Scientific  analysis  is  joined  to  administration,  and  the 
researches  are  directed  towards  the  point  where  they 
count  in  saving  cost  or  increasing  profits. 

Experiment  stations  now  are  able  to  let  the  farmer 


CONSTRUCTIVE   RESEARCH  n 

join  in  their  experiments.  Wisconsin  has  organized 
a  thousand  farmers  into  an  association,  all  of  them  ex- 
perimenting at  the  same  time  under  different  conditions, 
on  corn,  potatoes,  fertilizers,  and  then  sending  in  results 
to  headquarters  to  be  compared.  Wisconsin  has  also 
adopted  the  trust  method  in  the  regulation  of  public 
utilities.  Both  those  owned  by  corporations  and  those 
owned  by  municipalities  are  placed  on  a  uniform  system 
of  bookkeeping,  and  when  the  year's  accounts  are  made 
up  it  should  be  possible  to  compare  the  two  systems  of 
ownership  on  every  item  of  cost.  The  state  commission 
employs  gas  engineers,  steam  engineers,  electric  engineers, 
to  make  valuations  and  to  supervise  the  comparisons. 
This  commission,  joining  with  the  university,  has  re- 
cently, for  the  first  time  in  the  history  of  the  gas  industry, 
brought  together  the  companies  and  standardized  the 
meters  for  measuring  the  flow  of  gas.  This  basis  of 
constructive  research  once  established,  both  the  gas 
industry  and  municipal  government  should  become  more 
efficient. 

Standardization  is  essential,  but  not  all.  It  is  a  tool. 
The  real  work  of  research  is  done  by  the  individual 
investigator.  Standardization  measures  his  results.  The 
value  of  his  work  depends  on  the  constructive  object 
he  has  in  view.  Take  the  field  of  historical  research, 
frowned  upon  by  the  "  practical  "  man.  "  Why  do  you 
dig  up  old  and  musty  papers  and  records  ?  The  thing  is 
past  and  gone.  Take  something  that  people  are  doing." 

Let  us  see.  In  social  sciences  we  cannot  observe  and 
experiment  as  they  do  in  other  sciences.  I  cannot  bring 
into  my  classroom  an  employers'  association  and  a  trade 
union,  put  them  in  a  glass  case,  bring  my  students 
around,  watqh  them  tussle,  higgle,  settle  their  differences 


12  LABOR  AND   ADMINISTRATION 

—  the  way  Sir  John  Lubbock  did  when  he  studied  his 
bees  and  ants.  I  must  go  out  and  find  them.  And  I 
sometimes  find  that  the  most  instructive  ones  are  the 
dead  ones.  It  is  just  as  important  for  our  guidance  to 
know  why  a  trade  union  died  as  it  is  to  know  what  a 
live  one  is  doing.  The  living  one  may  seem  just  now 
to  have  strength,  confidence  and  the  good  will  of  em- 
ployers or  the  public.  But  it  may  have  within  it  fatal 
microbes.  These  will  show  up  later.  They  have  already 
shown  up  in  the  dead  ones. 

Other  fields  and  topics  might  be  mentioned.  The 
test  by  which  to  judge  them  is  this :  What  lesson  can 
be  worked  out  of  them  to  help  those  who  are  now  work- 
ing on  similar  problems?  Is  an  experiment  that  fails 
to  be  wholly  condemned,  or  can  it  be  taken  up  in  a  dif- 
ferent way?  What  is  it  that  the  law-maker  wants  to 
know  in  drafting  his  bill  for  legislation,  and  what  does 
the  judge  look  for  in  passing  upon  its  constitutionality  ? 
Let  these  problems  of  the  man  responsible  for  results 
be  held  before  the  investigator,  and  his  investigations 
will  be  constructive. 

What  is  the  value  of  constructive  research?  It  re- 
duces the  coercive  functions  of  government  and  increases 
the  part  played  by  persuasion.  We  speak  with  con- 
fidence of  the  power  of  public  opinion  and  the  value 
of  publicity.  But  journalistic  publicity  inflames  political 
passion,  and  academic  publicity  does  not  reach  it.  Con- 
structive research  gives  exact  information  for  the  public 
to  work  upon.  It  analyzes  the  facts  and  reduces  them 
to  the  point  where  the  public  can  use  them.  In  a  de- 
mocracy public  opinion  is  more  powerful  than  the  officers 
of  law.  It  makes  and  unmakes  them.  How  important 
that  the  administration  of  law  should  be  fully  known  and 


CONSTRUCTIVE   RESEARCH  13 

understood  by  the  public  exactly  as  it  is!  The  people 
then  help  to  enforce  it  by  the  mere  unanimity  of  opinion. 
To  the  constructive  investigator,  research  is  absorbing. 
He  shares  in  that  gradual  reconstruction  of  society  that, 
on  occasion,  arouses  the  orator,  lawyer,  preacher  or 
politician.  His  science  becomes  progressive.  His  solid 
facts  and  constructive  ideals  are  fundamental  for  the 
work  of  others.  Theirs  may  be  exciting ;  his  should  be 
equally  inspiring. 


CHAPTER  HI 

STANDARDIZING   THE   HOME1 

I  HAD  read  that  Glasgow  was  the  most  densely  crowded 
of  modern  cities,  because  14  per  cent  of  the  families 
lived  in  one  room.  After  visiting  one  of  the  model 
tenements  of  the  London  County  Council,  I  was  asked 
by  a  Glasgow  mechanic  to  look  into  his  ancient  rookery. 
The  one  room  in  which  he  and  his  family  lived  seemed 
to  me  to  be  larger  than  the  three-room  apartment  of  his 
fellow  who  enjoyed  the  municipal  socialism  of  modern 
London.  The  difference  was  that  he  put  up  his  own 
flimsy  partitions,  while  paternal  London  got  the  credit 
of  relieving  congestion  by  merely  erecting  permanent 
partitions. 

In  Pittsburgh  I  was  told  by  experts  in  housing  investi- 
gations that  the  cost  of  housing  there  was  greater  than 
in  any  other  city  of  the  country,  but  when  I  compared 
the  few  houses  that  I  saw  with  similar  houses  in  Chicago, 
taking  into  account  appurtenances,  I  could  not  see  that 
the  costs  were  different. 

British  workmen  and  employers  contended  that  their 
lower  wages  were  compensated  by  the  lower  cost  of  food 
as  well  as  housing,  compared  with  American  wages,  and 
I  could  not  refer  them  to  any  authentic  standards  of  food 
and  prices,  housing  and  rents,  that  would  disprove  their 
claims  to  their  satisfaction. 

1  American  Statistical  Association,  Quarterly  Publications)  Dec.,  1908; 
The  Journal  of  Home  Economics,  Feb.,  1910,  pp.  260-266. 


STANDARDIZING  THE   HOME  15 

If  comparisons  of  this  kind  were  a  matter  of  profit 
and  loss,  standard  units  would  long  since  have  been 
devised.  If  our  government  were  turned  over  to  an 
anti-poverty  syndicate  on  such  terms  that  the  syndicate 
should  have  a  half  of  the  increase  in  national  wealth 
produced  by  its  conservation  of  human  resources,  the 
syndicate  would  at  once  invent  standard  units  for  the 
measurement  of  costs  and  results.  Uniform  accounts 
and  cost-keeping  on  the  basis  of  such  standard  units 
are  essential  for  an  electric  or  gas  or  street-car  or  iron 
and  steel  syndicate  in  deciding  which  of  its  plants  is  most 
economical,  which  of  its  managers  is  most  efficient,  or 
which  of  its  inventions  and  experiments  is  most  promis- 
ing. A  gas  syndicate  would  go  bankrupt  if  a  thousand 
feet  of  gas  meant  a  different  amount  of  light,  heat, 
moisture,  pressure  or  rate  of  flow  in  its  different  estab- 
lishments. Every  branch  of  engineering  has  its  learned 
societies  and  scientific  experts  whose  most  important 
work  is  that  of  agreeing  upon  standard  units  to  be 
adopted  throughout  the  industry.  Now  that  another 
kind  of  engineering  —  "  social  engineering  "  —  is  emerg- 
ing from  the  speculations  and  theories  of  economics 
and  sociology,  we,  too,  are  compelled  to  pause  at  the  / 
threshold  in  order,  first  of  all,  to  agree  upon  the  units  \ 
by  which  we  shall  compare  our  costs  and  our  results. 

What  is  the  unit  that  we  are  seeking?  The  electric 
engineer,  or  steam  engineer,  or  water-power  engineer, 
seeks  a  unit  for  measuring  the  output  of  energy  —  a 
"  kilowatt "  or  a  "  horse-power."  He  seeks  also  his 
units  of  cost  —  the  quality  and  cost  of  the  coal  con- 
sumed, the  capacity  and  efficiency  of  boilers  and  engines. 
Our  unit  of  output  relates  to  the  health,  longevity, 
industrial  ability,  comfort  and  welfare  of  human  beings. 


16  LABOR   AND   ADMINISTRATION 

Our  units  of  cost  are  food,  shelter,  clothing,  occupation, 
education.  We  have  our  statistics  of  health  which  tell 
us  something  of  our  output,  and  we  are  trying  to  do 
something  toward  minimum  standards  of  food  and 
housing.  But  our  efforts  are  haphazard  because  we 
have  no  units  by  which  we  can  compare  costs  with  out- 
put. This  is  especially  distracting,  because,  under  our 
form  of  government,  our  courts  forbid  interference  that 
goes  beyond  their  ideas  of  what  is  necessary,  and  we  have 
no  standards  by  which  we  can  enlighten  them. 

There  is  one  department  of  sociology  which  eventually 
will  make  it  plain  that  standard  units  of  housing,  food 
and  occupation  are  also  a  matter  of  profit  and  loss. 
This  is  the  health,  vigor  and  efficiency  of  the  working 
population.  The  trade  longevity  of  the  workman,  the 
number  of  days  lost  through  sickness,  fatigue  and  de- 
vitalizing, the  rate  of  mortality,  are  the  greatest  of  all 
matters  of  national  business,  and  they  are  largely  the 
results  of  housing,  food  and  occupation. 

But,  to  what  extent  these  different  factors  enter,  it  is 
impossible  to  say  until  standard  units  are  devised  by 
which  to  compare  each  factor  with  the  resulting  morbidity, 
mortality  and  fatigue. 

Here  the  problem  of  the  economist  and  that  of  the 
hygienist  overlap.  The  economist  is  interested  in  com- 
parative cost  of  living,  the  hygienist  in  comparative 
causes  of  industrial  efficiency.  But  the  cost  of  living 
is  really  the  cost  of  the  workman's  efficiency.  If  so, 
the  unit  of  comparison  which  the  economist  wants  is 
the  same  unit  that  the  hygienist  wants.  Take  housing 
as  the  simplest  problem.  The  comparative  cost  of  hous- 
ing is  the  comparative  price  paid  for  a  unit  of  housing 
accommodation.  But  housing  accommodation  is  not 


STANDARDIZING  THE   HOME  17 

merely  floor  space  or  "  rooms  per  occupant  "  ;  it  is  also 
location,  air,  ventilation,  sunlight,  structural  condition, 
bath,  laundry,  running  water,  etc.  These  are  also  the 
conditions  of  health.  The  cost  of  housing  is  one  of  the 
costs  of  industrial  vigor.  If,  then,  we  devise  our  standard 
unit  with  reference  to  the  conditions  of  health,  we  shall 
have  practically  the  standard  needed  for  comparing 
prices  of  housing  accommodation. 

But  our  units  are  quite  complex,  and  there  is  a  lot  of 
personal  elements  that  baffle  us.  Is  this  a  fatal  difficulty  ? 
Only  in  case  we  attempt  too  much.  There  are  margins 
of  variation  in  every  branch  of  applied  science.  Let 
us  break  up  our  problem  and  begin  with  the  most 
essential.  This  is  the  home,  and  the  basis  of  the  home 
is  the  dwelling-house.  When  we  rent  or  buy  a  home, 
we  are  paying  for  a  bundle  of  house  accommodations 
for  the  sake  of  health,  comfort,  education  and  efficiency. 
How  much  house  accommodation  do  we  get,  and  how 
much  do  we  pay  for  each  unit  of  it  ? 

This  is  a  complicated  unit.  It  consists  of  many  factors, 
and  no  two  investigators  attach  the  same  weight  to  each 
of  the  factors.  But  this  difficulty  is  exactly  the  one 
that  has  been  met  in  another  field,  by  breeders'  associa- 
tions and  by  produce  exchanges,  in  standardizing  and 
grading  agricultural  products,  such  as  wheat,  corn, 
butter,  horses,  cows  and  pigs.  An  ideal  horse,  for  ex- 
ample, perfect  in  every  particular,  is  represented  by 
100  points.  The  horse  is  mapped  off  and  described  by  36 
specifications,  and  each  specification  is  given  a  weight 
or  value,  corresponding  to  its  importance  in  making  up 
the  perfect  animal.  Thus  "  general  appearance  "  gets 
29  points,  composed  of  5  points  for  "  weight,"  4  for 
"  form,"  6  for  "  quality,"  and  so  on.  These  standard 


i8  LABOR   AND   ADMINISTRATION 

weights,  or  values,  are  printed  in  a  column  opposite 
each  specification,  and  a  second  or  blank  column  is 
provided  under  the  caption  "  Points  Deficient."  In 
using  the  score  card,  the  "  valuer  "  goes  over  the  horse, 
noticing  in  detail  all  the  points  specified,  and  then  marks 
down  opposite  each  his  judgment  of  the  degree  to  which 
the  animal  before  him  is  deficient  in  that  particular  point. 
The  total  of  all  points  deficient  is  then  deducted  from 
100,  and  the  result  is  the  grade  of  the  animal  scored. 
It  is  an  interesting  fact,  illustrating  the  accuracy  of  this 
method  of  standardizing,  that  recently  two  horse  valuers, 
using  the  same  score  card,  one  employed  by  the  Wisconsin 
Railway  Commission,  and  the  other  by  the  Milwaukee 
Street  Car  Company,  in  valuing  fifty  horses  belonging 
to  the  company,  came  within  one  or  two  points  of  placing 
the  same  value  on  each  horse. 

In  attempting  to  adopt  this  method  I  have  drawn  up 
the  following  score  card  for  dwelling-houses.  The  weights, 
or  "  values,"  given  to  each  of  the  35  specifications  are 
of  course  tentative,  and  can  be  made  precise  only  after 
a  large  body  of  evidence  is  assembled  and  experts  have 
passed  upon  them.  But  precision  at  this  point  is  not 
important.  The  main  object  is  the  specifications  them- 
selves. If  all  investigators  use  the  same  specifications, 
any  person  afterwards  can  change  the  weights  to  suit 
his  own  theories  or  his  knowledge  of  the  facts. 

The  accuracy  of  the  method  consists  in  the  fact  that 
it  limits  the  total  margin  of  error  by  breaking  it  up  into 
30  or  40  little  margins.  Where  measurements  are 
possible,  but  little  discretion  need  be  left  to  the  indi- 
vidual. This  appears  in  the  case  of  "  window  openings." 
Where  measurements  are  not  possible,  the  agents  must 
depend  on  their  judgment,  but  this  judgment  can  be 


STANDARDIZING  THE   HOME  19 

brought  close  to  uniformity  by  "  instructions  for  dis- 
crediting when  depending  on  judgment."  For  conven- 
ience I  have  used  only  the  weights  3  and  6  for  those 
specifications  depending  on  judgment,  and  have  in- 
troduced the  same  kind  of  instructions  as  those  given 
in  the  official  score  cards  of  breeders'  associations  for 
horses  and  cattle.  These  and  other  instructions  will  be 
found  at  the  proper  points  on  the  score  card. 

When  a  house  is  "  scored  "  according  to  this  card,  we 
shall  have  the  "  total  points  deficient,"  and  the  "  actual 
score  "  of  that  house  compared  with  a  perfect  or  ideal 
house.  We  are  then  in  a  position  to  compare  the  rents 
or  cost  of  housing  by  correcting  the  "  nominal  rent,  " 
i.e.  the  money  rent  paid  by  the  occupant,  by  means  of 
the  "  actual  score."  I  have  suggested  three  standard 
units  of  comparison,  as  will  be  seen  on  the  card,  viz. 
"  rent  per  room,"  "  rent  per  100  sq.  ft."  of  floor  space, 
and  "  rent  per  1000  cu.  ft."  of  air  capacity.  Taking 
"  rent  per  100  sq.  ft.,"  which  is  probably  the  fairest  unit 
under  all  circumstances,  it  can  easily  be  seen  that,  of 
two  houses  renting  nominally  at,  say,  $i  per  month  for 
equal  floor  space,  if  the  "  actual  score  "  of  one  is  80  and 
the  other  50,  the  "  real  rent  "  of  the  one  is  $1.25  and  the 
other  $2  for  the  unit  of  house  accommodation  com- 
pared with  the  real  rent  of  $i  for  a  perfect  house. 

DWELLING  HOUSE  SCORE  CARD 

Applies  to  a  Single  Family  or  Household 

State City Street No 

Name  of  Owner Name  of  Occupant 

Name  of  Investigator Date 

Instructions  for  Discrediting  when  Depending  on  Judgment 

Deduct  from  possible  6;  very  slight,  i;  slight,  2;  marked,  3;  very  marked,  4;  ex- 
treme, 5. 

Deduct  from  possible  3;  very  slight,  $;  slight,  i;  marked,  ij;  very  marked,  2;  ex- 
treme, 2j. 


20 


LABOR  AND  ADMINISTRATION 


I.  —  DWELLING  —  100  POINTS 

Possible 
Score 

Points 
Defi- 
cient 

Actual 
Score 

,OCATION  —  18  Points 
i.  General  Character  of  Neighborhood,  villa,  farm, 
residence,   park 

(18) 
3 

(             ) 

(             ) 

(Discredit  for  factory,  slum,  neglected  district) 
2.  Elevation,  high  ground,  sloping  away  on  all  sides  . 

3 

smooth,  hard,  free  from  dust,  sprinkled,  flushed, 

3 

Indicate  whether   asphalt,   block  stone,  macadam, 
cobble,  wood,  dirt) 

3 

5.  Odors,  free  from  nauseous  (indicate  source)  .... 

3 
3 

:ONGESTION  OF  BUILDINGS  —  26  Points' 
7.  Character  of  Dwelling  —  10  Points 
Detached 

(26) 

IO 

(         ) 

(         ) 

Attached,  separate  entrance,  discredit  i  point 
Attached,  common  entrance,  discredit  2  points 
Flat  (entire  floor),  discredit  3  points 
Apartment  (2  or  more  on  same  floor),  discredit  4 
points 
Basement  (over  |  above  street  level),  discredit  5 
points 
Cellar  (over  |  below  street  level),  discredit  6 
points 
Additional  discredits  for  flat  or  apartment  with- 
out   elevator,    2d    floor    2  points,  sd  floor  3 
points,  etc. 
8.  Sunlight  —  16  Points 
Height  and  distance  of  next  building  (use  foot  of 
its  own  window  in  case  of  flat  or  apartment, 
otherwise  foot  of  lower  window,  as  base  line 
above  which  to  measure  hei^htof  nextbuilding). 
Direction               Height    Distance   Per  Cent 
Ind.  street  or  alley)        (feet)        (feet)         (Height 
-100) 
North 

3 

South  .  .  . 

5 

East 

4 

West 

4 

(If  distance  equals  or  exceeds  height,  no  points  de- 
ficient —  if  distance  is  less  than  height,  actual 
score  is  same  per  cent  of  possible  score  as  distance 
to  height,  e.g.  if  distance  =  20%  of  height,  actual 
score  =  20%  of  possible  score,  etc.) 
5VINDOW   OPENINGS  —  n  Points 

(11) 

(              ) 

(         ) 

Rooms            Window     Floor           Per  Cent 
(Indicate  kitch-    Space       Space     Window  Space 
en,  sleeping,    (Sq.  Ft.)    (Sq.  Ft.)     (Floor  space 
bath,  etc.)                                                    =  100  ) 

2 

3  

5  

6  

Number  of  Rooms  (including  dark  rooms) 
having  window  space  less  than  20  %          

Per  Cent  of  same  to  total  rooms 

Number  of  dark  Rooms    

Per  Cent  of  same  to  total  rooms                        .  . 

STANDARDIZING   THE   HOME 


21 


I.  —  DWELLING  —  100  POINTS 

Possible 
Score 

Points 
Defi- 
cient 

Actual 
Score 

g.  Total  Window  Space,  not  less  than  20%  of  total 

5 
3 

3 

(13) 
4 

3 

6 

(6) 

3 

i 

(Discredit  i  point  for  each  deficiency  of  i  % 
—  e.g.  window  space  16  %  of  floor  space,  dis- 
credit i  point,  leaving  actual  score  4) 
DISTRIBUTION  OF  WINDOW  SPACE  —  6  Points 
10.  Deficient  Rooms,  no  room  less  than  20%  
(Discredit  same  per  cent  of  possible  score  as  per 
cent  of  rooms  having  window  space  less  20%,  e.g. 
6-room  house,  2  rooms  deficient,  discredit  $  of  3 
=  i,  leaving  actual  score  2) 
ii.  Dark  Rooms,  no  room  without  window  openings 
(Discredit  same  per  cent  of  possible  score  as  per 
cent  of  dark  rooms,  e.g.  6-room   house,  i  dark 
room,  discredit,^  of  3  =  Cleaving  actual  score  2$) 
Notice  :  dark  room   is  discredited  also  above  as 
"  deficient  room  " 
AIR  AND  VENTILATION  —  13  Points 
12.  Heating  Arrangements,  adapted  to  secure  cir- 
culation of  fresh  air  such  as  open  fireplace,  hot- 
air    furnace,    stove    (connecting    directly    with 

(         ) 

(         ) 

(Discredit  i  point  for  steam  or  hot  water,  §  point 
for  each  stove  connecting  with  chimney  in  an- 
other room) 
13.  Temperature,  adapted  to  secure  even  tempera- 
ture, not  excessive  heat  or  cold,  equal  in  different 

(Discredit  proportionately  for  each  room  with- 
out heating  appliance) 
14.  Dampness,   freedom   from    (indicate   whether 
cellar,  kitchen,  sleeping  rooms,  other  rooms)  .  .  . 
STRUCTURAL  CONDITION  —  6  Points 
15.  Material.  (Indicate  whether  wood,  brick,  stone, 
concrete,  no  decayed  wood,  walls,  floors,  ceilings 
in  good  condition) 

(Discredit  \  point  for  papered  walls  or  ceilings) 
16.  Size  of  Rooms,  height  of  ceiling,  not  less  than  o 
feet 

(Discredit  }  point  for  each  foot  deficient) 

2 

(Discredit    proportionately    for  each  room  less 
than  120  sq.  ft.) 
HOUSE  APPURTENANCES  —  26  Points 
(Discredit  total  score  in  each  case  if  appurtenance 
is  not  provided) 
18.  Bath.  (Discredit  2  points  for  bath  used  in  com- 
mon) . 

(26) 

4 
4 

i 

(         ) 

(         ) 

IQ  Closet  in  Dwelling 

(Discredit  i   point  for  closet  used  in  common,  2 
for  outhouse  with  sewer  connection,  3  without 
sewer) 
20  Sink   (Discredit  \  for  sink  used  in  common) 

21.  Laundry.  (Discredit  \  for  common  laundry)  .  .  . 
22.  Running  Water  in  House.  (Discredit  i  point  for 
common  hydrant,  2  for  hydrant  outside,  3  for 
well  outside) 

i 

4 

6 
3 
3 
IOO 

23.  Condition  of  Appurtenances,  good  material  and 
workmanship,  all  pipes  exposed 

24   Quality  of  Water  for  Drinking 

25.  Quality  of  Water  for  Bath  and  Laundry  .  .  . 
DWELLING  TOTAL 

22  LABOR  AND  ADMINISTRATION 


COST   OF  HOUSING 

Rent  per  month  $ Rental  value  (if  occupied  by  owner)  $ 

Unit  of  Comparison  Nominal  Rent  Real  Rent 

Rent  per  room $ $ 

Rent  per  100  sq.  ft $ $ 

Rent  per  1000  cu.  ft $ $ 

Probable  income  of  family  per  month  $ 


The  foregoing  applies  solely  to  the  house  itself,  or  to 
the  landlord  as  responsible  for  the  house.  But  the  con- 
ditions of  health  and  the  cost  of  housing  are  modified 
by  the  habits  and  circumstances  of  the  occupants. 
These  should  be  separated  from  the  other  problem  by 
means  of  a  separate  score  card.  Here  the  problem  of 
"  congestion  of  occupancy  "  is  paramount,  and  the  unit 
of  comparison  is  the  "  rent  per  occupant."  The  actual 
score  on  the  "  occupant  "  card  becomes  a  coefficient  of 
the  actual  score  on  the  "  dwelling  "  card,  and  this  com- 
bined score  gives  the  grading  of  the  unit  of  housing 
accommodation  as  provided  by  the  landlord  and  modified 
by  the  tenant.  If,  for  example,  two  houses  are  scored 
80  and  50,  respectively,  on  the  "dwelling"  card,  and  the 
occupants  of  each  are  scored  alike  at  70  on  the  "  occu- 
pant "  card,  then  the  combined  dwelling  and  occupant 
scores  are  56  and  35,  respectively.  If,  then,  the  nominal 
or  money  rent  is  $2  per  occupant,  the  real  rents  are 
$3.57  and  $5.71  per  occupant  compared  with  $2  for  the 
ideal  or  standard  dwelling  occupied  by  the  ideal  or 
standard  tenant. 

I  wish  to  call  attention  to  the  pedagogical  value  of  the 
score  card  as  the  basis  of  practical  instruction  in  eco- 
nomics and  sociology.  This  value  has  been  conclusively 
demonstrated  in  our  agricultural  colleges,  where  the 
students  begin  their  studies  by  using  it  on  animals  and 
cereals.  It  develops  the  student  in  his  ideals  of  per- 


STANDARDIZING  THE   HOME 


DWELLING  HOUSE  SCORE  CARD 


II.—  OCCUPANTS  —  ioo  POINTS 

Possible 
Score 

Points 
Deficient 

Actual 
Score 

CONGESTION  OF  OCCUPANCY  —  61  Points 
Occupants,  number 
Family,  10  years  old  and  over,  male    
"     "         "       "         "     female      

(6l) 

(         ) 

(         ) 

Lodgers,  Domestics,  10  years  old  and  over,  male 
female 

Total  (Child  under  10  as  ^  person) 

i.  Cubic  Air  Space  (average  height  of   ceiling  by 
total  floor  space)   cu  ft 

Cu  ft  per  occupant                 No  discredit  if  1000 

5° 

or  over 
(Discredit  i  point  for  each  20  ft.  below  1000,  e.g. 
600  cu.  ft.  discredit  20  points,  leaving  actual 

II 

2.  Sleeping  Rooms  per  Occupant  
(Discredit  i  point  for  each  person  in  excess  of 
number  of  sleeping  rooms) 
CONDITION  OF  AIR  AND  VENTILATION  —  18 
Points 
3   Windows   kept  open  to  fresh  air 

(18) 

3 

(         ) 

(         ) 

6 

cold 

6 

home  workshop 
CLEANLINESS,  care  and  attention,  no  rubbish,  dirt, 
grease  or  refuse,  —  21  Points 
6   Hallways 

(21) 

(         ) 

(         ) 

8   Walls 

•2 

6 

10  Yard 

6 

OCCUPANTS  TOTAL 

IOO 

Rent  per  occupant   nominal 

Real  rent  per  occupant(  compared  with  standard)  $.  .  . 

fection,  his  accuracy  of  observation,  and  his  power  of 
judgment.  These  are  the  great  essentials  of  scientific 
education,  and  they  have  been  admirably  stated  by  Mr. 
Craig  in  his  book  "  Judging  Live  Stock."  He  says : 
"  To  formulate  an  ideal  is  absolutely  essential,  and  in 
doing  this  it  is  imperative  to  familiarize  one's  self  with 
the  good  qualities  of  animal  life,  correct  conformation 
and  the  highest  types,  so  that  the  least  variation  from 
these  at  once  attracts  the  attention.  When  a  distinct 
ideal,  based  on  the  best  types  and  their  highest  qualities. 


24  LABOR  AND   ADMINISTRATION 

has  been  formed  in  the  mind,  and  this  is  supported  by 
a  discriminating  eye,  it  is  but  another  step  to  render 
a  correct  judgment." 

What  Mr.  Craig  says  of  agricultural  education  is  true 
also  of  sociological  education.  The  score  card  directs 
attention  to  details  often  overlooked.  It  requires  con- 
sideration of  their  meaning  and  significance.  It  sets 
up  standards  of  precise  observation  in  place  of  vague 
or  sentimental  impressions  of  things  in  general.  When 
perfected  it  will  go  far  towards  giving  to  home  economics 
the  character  of  a  true  science. 


CHAPTER  IV 

AN   IDEALISTIC   INTERPRETATION   OF  HISTORY1 

THE  French  are  a  nation  of  philosophers.  Starting 
with  a  theory  of  the  rights  of  man,  they  build  up  a 
logical  system.  Then  a  revolution,  and  the  theory  goes 
into  practice.  Next  a  coup  d'etat,  an  emperor. 

The  English  are  a  nation  without  too  much  philosophy 
or  logic.  They  piece  out  their  constitution  at  the  spot 
where  it  becomes  tight,  and  their  nobility  gracefully 
gives  up  its  ancient  privileges  in  exchange  for  land  values. 
They  are  practical,  opportunist,  unlogical. 

The  Americans  are  French  in  their  logic  and  English 
in  their  use  of  logic.  They  announce  the  universal 
rights  of  man  and  then  enact  into  law  enough  to  augment 
the  rights  of  property.  They  have  had  in  their  history 
three  great  periods  of  this  philosophizing  on  innate  and 
inalienable  rights :  the  period  of  the  constitution,  the 
decade  of  the  forties,  and  to-day. 

The  forties  far  outran  the  other  periods  in  its  un- 
bounded loquacity.  The  columns  of  advertisements  in 
a  newspaper  might  announce  on  Monday  night  a  meeting 
of  the  anti-slavery  society;  Tuesday  night,  the  tem- 
perance society;  Wednesday  night,  the  Graham  bread 
society ;  Thursday  night,  a  phrenological  lecture ; 
Friday  night,  an  address  against  capital  punishment; 
Saturday  night,  the  "  Association  for  Universal  Reform." 

1  Published  originally  under  the  title  "Horace  Greeley  and  the  Work- 
ing Class  Origins  of  the  Republican  Party,"  Political  Science  Quarterly, 
Vol.  XXIV,  pp.  468-488. 

25 


26  LABOR  AND  ADMINISTRATION 

Then  there  were  all  the  missionary  societies,  the  woman's 
rights  societies,  the  society  for  the  diffusion  of  bloomers, 
the  seances  of  spiritualists,  the  "  associationists,"  the 
land  reformers  —  a  medley  of  movements  that  found 
the  week  too  short.  Thirty  colonies  of  idealists,  like 
the  Brook  Farm  philosophers,  went  off  by  themselves 
to  solve  the  problem  of  social  existence  in  a  big  family 
called  a  Phalanx.  The  Mormons  gathered  themselves 
together  to  reconstitute  the  ten  lost  tribes.  Robert 
Owen  expounded  communism  to  the  United  States 
Senate  and  House  of  Representatives.  It  was  the  golden 
age  of  the  talk-fest,  the  lyceum,  the  brotherhood  of  man 
-  the  "  hot  air  "  period  of  American  history. 

Fifty  years  before  had  been  an  age  of  talk.  Thomas 
Jefferson  and  Thomas  Paine  had  filled  the  young  nation's 
brain  with  the  inalienable  rights  of  life,  liberty  and  the 
pursuit  of  happiness.  This  second  era  of  talk  had  also 
its  prophet.  Horace  Greeley  was  to  the  social  revolu- 
tion of  the  forties  what  Thomas  Jefferson  was  to  the 
political  revolution  of  1800.  He  was  the  Tribune  of  the 
people,  the  spokesman  of  their  discontent,  the  champion 
of  their  nostrums.  He  drew  the  line  only  at  spirit  rap- 
pings  and  free  love. 

This  national  palaver  was  partially  checked  by  the 
fugitive  slave  law  of  1850.  The  spectacle  of  slave- 
drivers,  slave  rescues  and  federal  marshals  at  men's 
doors  turned  discussion  into  amazement.  The  palaver 
stopped  short  in  1854  with  the  Kansas-Nebraska  bill. 
That  law  marked  off  those  territories  for  a  free  fight 
for  land  between  slave-owners  and  small  farmers.  On 
this  land  issue  the  Republican  party  suddenly  appeared. 
Its  members  came  together  by  a  magic  attraction,  as 
crystals  appear  in  a  chilled  solution.  Not  one  man  nor 


IDEALISTIC   INTERPRETATION  OF  HISTORY     27 


one  set  of  men  formed  the  party,  though  there  are  many 
claimants  for  the  honor  of  first  suggesting  the  name  or 
calling  the  first  meeting  that  used  the  name.  The  fluid 
solution  was  there.  When  the  chill  came,  the  crystals 
formed.  It  was  the  fifteen  years  of  revolutionary  talk 
that  made  the  party  possible.  Men's  minds  had  been 
unsettled.  Visions  of  a  new  moral  world  had  come  upon 
them.  Tradition  had  lost  its  hold  and  transition  its 
terrors. 

We  hear  nowadays  of  the  "  economic  interpretation  of 
history."  Human  life  is  viewed  as  a  struggle  to  get  a 
living  and  to  get  rich.  The  selfishness  of  men  hustling  for 
food,  clothing,  shelter  and  wealth  determines  their 
religion,  their  politics,  their  form  of  government,  their 
family  life,  their  ideals.  Economic  evolution  produces 
religious,  political,  domestic,  philosophical  evolution. 
All  this  we  may  partly  concede.  But  certainly  there  is 
something  more  in  history  than  a  blind  surge.  Men  act 
together  because  they  see  together  and  believe  together. 
An  inspiring  idea,  as  well  as  the  next  meal,  makes  history. 
It  is  when  such  an  idea  coincides  with  an  economic  want, 
and  the  two  corroborate  each  other,  that  the  mass  of  men 
begins  to  move.  The  crystals  then  begin  to  form ; 
evolution  quickens  into  revolution;  history  reaches  a 
crisis. 

For  ideas,  like  methods  of  getting  a  living,  have  their 
evolution.  The  struggle  for  existence,  the  elimination 
of  the  unfit,  the  survival  of  the  fit,  control  these  airy 
exhalations  from  the  mind  of  man  as  they  control  the 
more  substantial  framework  of  his  existence.  The  great 
man  is  the  man  in  whose  brain  the  struggling  ideas  of  the 
age  fight  for  supremacy  until  the  survivors  come  out 
adapted  to  the  economic  struggle  of  the  time.  Judged 


28  LABOR  AND  ADMINISTRATION 

by  this  test,  Horace  Greeley  was  the  prophet  of  the  most 
momentous  period  of  our  history.  The  evolution  of  his 
ideas  is  the  idealistic  interpretation  of  our  history. 

Greeley 's  life  was  itself  a  struggle  through  all  the 
economic  oppressions  of  his  time.  In  his  boyhood  his 
father  had  been  reduced  by  the  panic  of  1819  from  the 
position  of  small  farmer  to  that  of  day  laborer.  The  son 
became  an  apprentice  in  a  printing-office,  then  a  tramp 
printer,  and  when  he  drifted  into  New  York  in  1831  he 
found  himself  in  the  midst  of  the  first  workingmen's 
political  party  with  its  first  conscious  struggle  in  America 
for  the  rights  of  labor.  Pushing  upwards  as  publisher 
and  editor,  the  panic  of  1837  brought  him  down  near  to 
bankruptcy,  but  the  poverty  of  the  wage-earners  about 
him  oppressed  him  more  than  his  own.  "  We  do  not 
want  alms,"  he  heard  them  say ;  "we  are  not  beggars ; 
we  hate  to  sit  here  day  by  day  idle  and  useless ;  help 
us  to  work  —  we  want  no  other  help ;  why  is  it  that  we 
can  have  nothing  to  do?"1  Revolting  against  this 
"  social  anarchy,"  as  he  called  it,  he  espoused  socialism 
and  preached  protectionism.  This  was  the  beginning 
of  his  "  isms."  Not  that  he  had  been  immune  before  to 
cranky  notions.  When  only  a  boy  of  thirteen  he  broke 
away  from  the  unanimous  custom  of  all  classes,  ages 
and  both  sexes  by  resolving  never  again  to  drink  whiskey.2 
When  "  Doctor "  Graham  proclaimed  vegetarianism 
in  1831,  he  forthwith  became  an  inmate  of  a  Graham 
boarding-house.3  But  these  were  personal  "isms." 
They  bothered  nobody  else.  Not  until  the  long  years 
of  industrial  suffering  that  began  in  1837  did  his  "  isms  " 

1  Greeley,  H.,  "Recollections  of  a  Busy  Life,"  p.  145. 

2  Ibid.,  p.  98. 

3  Ibid.,  p.  103. 


IDEALISTIC   INTERPRETATION   OF   HISTORY     29 

become  gospels  and  his  panaceas  propaganda.  His 
total  abstinence  of  1824  became  prohibitory  legislation 
in  1850.  His  vegetarianism  of  the  thirties  became  aboli- 
tion of  capital  punishment  in  the  forties.  The  crank 
became  the  reformer,  when  once  the  misery  and  help- 
lessness of  the  workers  cried  aloud  to  him. 

Greeley's  "  isms  "  are  usually  looked  upon  as  the 
amiable  weaknesses  of  genius.  They  were  really  the 
necessary  inquiries  and  experiments  of  the  beginnings 
of  constructive  democracy.  Political  democracy  there- 
tofore had  been  negative.  Thomas  Jefferson  and  Andrew 
Jackson  needed  no  creative  genius  to  assert  equal  rights. 
They  needed  only  to  break  down  special  privilege  by 
widening  the  rights  that  already  existed.  Jefferson 
could  frame  a  bill  of  rights,  but  he  could  not  construct 
a  constitution.  Jackson  could  kill  a  "  monster  "  bank, 
but  he  could  not  invent  a  people's  control  of  the  currency. 
Negative  democracy  in  1776,  in  1800,  in  1832,  had  tri- 
umphed. It  had  done  its  needful  work,  but  its  day  was 
ended  when  a  thousand  wild-cat  banks  scrambled  into 
the  bed  of  the  departed  "  monster."  Political  democracy 
went  bankrupt  when  the  industrial  bankruptcy  of  1837 
exposed  its  incapacity.  It  had  vindicated  equal  rights, 
but  where  was  the  bread  and  butter?  The  call  of  the 
time  was  for  a  new  democracy  —  one  that  should  be 
social  and  economic  rather  than  political ;  constructive 
rather  than  negative;  whose  motto  should  be  reform, 
not  repeal;  take  hold,  not  let  alone;  faire,  not  laissez 
faire. 

But  there  were  no  examples  or  precedents  of  such  a  de- 
mocracy. The  inventor  of  a  sewing  machine  or  the 
discoverer  of  a  useful  chemical  compound  endures 
hundreds  of  failures  before  his  idea  works.  But  his 


3o  LABOR  AND   ADMINISTRATION 

failures  are  suffered  at  home.  The  world  does  not  see 
them.  Only  his  success  is  patented.  But  the  social 
inventor  must  publish  his  ideas  before  he  knows  whether 
they  will  work.  He  must  bring  others  to  his  way  of 
thinking  before  he  can  even  start  his  experiment.  The 
world  is  taken  into  his  secret  while  he  is  feeling  his  way. 
They  see  his  ideas  in  the  "  ism  "  stage.  To  the  negative 
democrat  this  brings  no  discredit :  he  has  no  device  to 
offer.  To  the  constructive  democrat  it  brings  the  stigma 
of  faddism.  The  conservatives  see  in  him  not  only  the 
radical,  but  also  the  crank  with  a  machine  that  might 
possibly  work. 

Greeley's  Tribune,  prior  to  1854,  was  the  first  and  only 
great  vehicle  this  country  has  known  for  the  ideas  and 
experiments  of  constructive  democracy.  The  fact  that 
the  circulation  of  the  newspaper  doubled  and  redoubled 
beyond  anything  then  known  in  journalism,  and  in  the 
face  of  ridicule  heaped  on  virulence,  proves  that  the 
nation,  too,  was  feeling  its  way  towards  this  new  de- 
mocracy. 

Naturally  enough,  Greeley  was  a  puzzle  both  to  the 
radicals  and  to  the  standpats  of  his  day.  The  Working 
Man's  Advocate  1  said  of  him  : 

If  ever  there  was  a  nondescript,  it  is  Horace  Greeley.  One  night 
you  may  hear  him  make  a  patriotic  speech  at  a  Repeal2  meeting. 
The  next  day,  he  will  uphold  a  labor-swindling,  paper-money 
system.  .  .  .  We  should  be  sorry  to  be  driven  to  the  conclusion 
that  such  a  man  could  be  actuated  only  by  paltry  party  ism. 

The  Abolitionists  were  incensed  when  he  wrote  to  the 
Anti-Slavery  Convention  at  Cincinnati : 

JJune  29,  1 844,  P-  3,  c.  4. 

2  Repeal  of  the  Act  uniting  Ireland  with  England. 


IDEALISTIC   INTERPRETATION   OF   HISTORY     31 

If  I  am  less  troubled  concerning  the  Slavery  prevalent  in  Charles- 
ton or  New  Orleans,  it  is  because  I  see  so  much  slavery  in  New 
York,  which  appears  to  claim  my  first  efforts.  .  .  .  Wherever 
the  ownership  of  the  soil  is  so  engrossed  by  a  small  part  of  the 
community,  that  the  far  larger  number  are  compelled  to  pay 
whatever  the  few  may  see  fit  to  exact  for  the  privilege  of  occupying 
and  cultivating  the  earth,  there  is  something  very  like  Slavery. 
.  .  .  Wherever  opportunity  to  labor  is  obtained  with  difficulty, 
and  is  so  deficient  that  the  employing  class  may  virtually  prescribe 
their  own  terms  and  pay  the  Laborer  only  such  share  as  they  choose 
of  the  product,  there  is  a  very  strong  tendency  to  Slavery.1 

The  Whigs  and  protectionists  used  him,  but  dreaded  him. 
The  Express  charged  him  with 

attempting  incessantly  ...  to  excite  the  prejudices  of  the  poor 
against  the  rich,  and  in  the  general,  to  array  one  class  of  society 
against  the  other.  .  .  .  We  charge  the  Tribune  .  .  .  with  rep- 
resenting constantly  that  there  is  a  large  amount  of  suffering 
arising  from  want  of  employment,  and  that  this  employment  the 
rich  might  give.  We  charge  the  Tribune  with  over-rating  entirely 
the  suffering  of  the  poor  ...  all  of  which  tallies  with,  and  is  a 
portion  of  the  very  material,  which  our  opponents  use  to  prejudice 
the  poor  against  the  Whigs  as  a  party.2 

Two  years  after  this  attack  by  the  Express,  the  Courier 
read  him  out  of  the  party : 

There  can  be  no  peace  in  the  Whig  ranks  while  the  New  York 
Tribune  is  continued  to  be  called  Whig.  .  .  .  The  principles  of 
the  Whig  party  are  well  defined ;  they  are  conservative  and  incul- 
cate a  regard  for  the  laws  and  support  of  all  established  institutions 
of  the  country.  They  eschew  radicalism  in  every  form ;  they  sus- 
tain the  constitution  and  the  laws ;  they  foster  a  spirit  of  patriotism, 
.  .  .  The  better  way  for  the  Tribune  would  be  at  once  to  admit 

1  Tribune,  June  20,  1845;    see  "  Documentary  History  of  American 
Industrial  Society,"  A.  H.  Clarke  &  Co.,  Cleveland,  Vol.  VII,  pp.  211- 
216. 

2  Tribune,  Aug.  5,  1845. 


32  LABOR  AND  ADMINISTRATION 

that  it  is  only  Whig  on  the  subject  of  the  Tariff  .  .  .  and  then 
devote  itself  to  the  advocacy  of  Anti-Rent,  Abolition,  Fourierite 
and  Vote-yourself-a-farm  doctrines.1 

These  quotations  give  us  the  ground  of  Greeley's 
\'  isms  "  -  the  elevation  of  labor  by  protecting  and  re- 
)rganizing  industry.  Even  the  protective  tariff,  favored 
by  the  Whigs,  was  something  different  in  his  hands. 
The  tariff  arguments  of  his  boyhood  had  been  capitalistic 
arguments.  Protect  capital,  their  spokesmen  said, 
because  wages  are  too  high  in  this  country.  Eventually 
wages  will  come  towards  the  European  level  and  we 
shall  not  need  protection.  Greeley  reversed  the  plea: 
protect  the  wage-earner,  he  said,  in  order  that  he  may 
rise  above  his  present  condition  of  wages  slavery.  The 
only  way  to  protect  him  against  the  foreign  pauper  is  to 
protect  the  price  of  his  product.  But,  since  capital 
owns  and  sells  his  product,  we  needs  must  first  protect 
capital.  This  is  unfortunate,  and  we  must  help  the 
laborer  as  soon  as  possible  to  own  and  sell  his  product 
himself.  "  We  know  right  well,"  he  says,2  "  that  a 
protective  tariff  cannot  redress  all  wrongs.  .  .  .  The 
extent  of  its  power  to  benefit  the  Laborer  is  limited  by 
the  force  and  pressure  of  domestic  competition,  for  which 
Political  Economy  has  as  yet  devised  no  remedy.  ..." 

Here  was  the  field  for  his  socialism.  It  would  do  for 
domestic  competition  what  protection  would  do  for 
foreign  competition.  Protectionism  and  socialism  were 
the  two  wheels  of  Greeley's  bicycle.  He  had  not  learned 
to  ride  on  one. 

But  the  socialism  which  Greeley  espoused  would  not 

1  Courier  and  Enquirer,  Aug.  14,  1847;    quoted  in  Weekly  Tribune, 
Aug.  21,  1847. 

2  Tribune,  March  27,  1845. 


IDEALISTIC   INTERPRETATION   OF  HISTORY     33 

be  recognized  to-day.  It  is  now  condescendingly 
spelled  "  utopianism."  He  felt  that  the  employers  were 
victims  of  domestic  competition  just  as  were  the  laborers, 
and  he  assumed  that  they  would  be  just  as  glad  as  the 
laborers  to  take  something  else.  What  he  offered  to 
both  was  a  socialism  of  class  harmony,  not  one  of  class 
struggle. 

In  the  idealistic  interpretation  of  history  there  are  two 
kinds  of  idealism  —  a  higher  and  a  lower.  Greeley's 
significance  is  the  struggle  of  the  two  in  his  mind,  the 
elimination  of  the  unfit  from  each  and  the  survival  and 
coalescence  of  the  fit  in  the  Republican  party.  The 
higher  idealism  came  to  him  through  the  transcendental 
philosophers  of  his  time.  The  lower  came  from  the 
working  classes.  The  higher  idealism  was  humanitarian, 
harmonizing,  persuasive.  The  lower  was  class-con- 
scious, aggressive,  coercive.  The  higher  was  a  plea 
for  justice;  the  lower  a  demand  for  rights.  In  1840 
Greeley  was  a  higher  idealist.  In  1847  ne  had  shaved 
down  the  higher  and  dovetailed  in  the  lower.  In  1854 
the  Republican  party  built  both  into  a  platform. 

Let  us  see  the  origins  of  these  two  levels  of  idealism 
before  they  came  to  Greeley. 

Boston,  we  are  told,  is  not  a  place  —  it  is  a  state  of 
mind.  But  every  place  has  its  state  of  mind.  The 
American  pioneer,  in  his  frontier  cabin,  in  the  rare 
moments  which  his  battle  with  gigantic  nature  leaves 
free  for  reflection,  contemplates  himself  as  a  trifle  in  a 
succession  of  accidents.  To  him  comes  the  revivalist, 
with  his  faith  in  a  God  of  power  and  justice,  and  the 
pioneer  enters  upon  a  state  of  mind  that  constructs 
order  out  of  accident  and  unites  him  with  the  al- 
mighty ruler  of  nature.  This  was  the  state  of  mind 


34  LABOR  AND  ADMINISTRATION 

of  Boston  when  Boston  was  Massachusetts  Bay  and 
Plymouth  Colony. 

But  Massachusetts  grew  in  wealth.  Wealth  is  merely 
nature  subdued  to  man.  Capital  is  the  forces  of  nature 
taking  orders  from  property  owners.  God  is  no  longer 
appreciated  as  an  ally  for  helpless  man.  The  revivalist 
becomes  the  priest  and  the  protector  of  capital. 

But  now  a  new  contest  begins.  Capital  requires  labor 
to  utilize  it.  Labor  depends  on  capital  for  a  living.  The 
contest  is  not  between  man  and  nature,  but  between  man 
and  the  owner  of  capitalized  nature.  Boston  saw  the 
first  outbreaks  of  the  struggle  in  1825  and  in  1832.  In 
the  former  year  the  house  carpenters,  in  the  latter  year 
the  ship  carpenters,  determined  that  no  longer  would 
they  work  from  sunrise  to  sunset.  They  conspired  to- 
gether and  quit  in  a  body.  In  the  former  year  the  capi- 
talists, with  Harrison  Gray  Otis  at  their  head,  in  the 
latter  year  the  merchant  princes  whose  ships  traversed 
the  globe,  took  counsel  together  and  published  in  the 
papers  their  ultimatum  requiring  their  workmen  to 
continue  as  before  from  dawn  to  dark.1  Losing  their 
contention,  the  workmen  again  in  1835  began  a  general 
strike  for  the  ten-hour  day  throughout  the  Boston 
district,  only  again  to  lose.  Meanwhile  the  factory 
system  had  grown  up  at  Lowell  and  other  places,  with  its 
women  and  children  on  duty  thirteen  and  fourteen  hours 
a  day,  living  in  company  houses,  eating  at  the  company 
table  and  required  to  attend  the  company  church.  While 
some  of  the  ten-hour  strikes  of  1835  had  been  successful 
in  Philadelphia  and  in  New  York,  the  working  people  of 

1  Columbian  Centinel,  April  20,  23,  1825  ;  "  Doc.  Hist.,"  Vol.  VI,  pp. 
76-81 ;  Independent  Chronicle,  May  19,  23,  26,  30,  1832;  "Doc.  Hist.," 
Vol.  VI,  pp.  81-86. 


IDEALISTIC   INTERPRETATION   OF   HISTORY     35 

New  England  were  doomed  to  the  long  day  for  another 
fifteen  years. 

It  was  in  the  midst  of  this  economic  struggle  that  Uni- 
tarianism  and  transcendentalism,  in  New  England,  took 
hold  of  the  clergy.  These  movements  were  a  revolt 
against  the  predicament  in  which  the  God  of  nature 
had  unwittingly  become  the  God  of  capital.  They  were 
a  secession  back  to  the  God  of  man.  At  first  the  ideas 
were  transcendental,  metaphysical,  allegorical,  harmless. 
This  was  while  the  workingmen  were  aggressive  and  de- 
fiant in  their  demands  and  strikes.  But,  after  1837  and 
during  the  seven  years  of  industrial  depression  and  help- 
lessness of  the  workingmen  following  that  year  of  panic, 
transcendentalism  became  pragmatic.  Its  younger 
spokesmen  allied  themselves  with  labor.  They  tried 
to  get  the  same  experience  and  to  think  and  feel  like 
manual  workers.  Brook  Farm  was  the  zealous  expres- 
sion in  1842  of  this  struggle  for  reality  and  for  actual 
unity;  and  after  1843  the  Brook  Farm  representatives 
began  to  show  up  at  the  newly  organized  New  England 
and  New  York  conventions  of  workingmen,  calling 
themselves  also  by  the  lofty  name  of  "  workingmen  " 
delegates. 

But  this  was  not  enough.  Reality  demanded  more 
than  unity  of  sentiment.  It  demanded  reconstruction 
of  society  on  the  principle  of  unity.  At  this  juncture, 
1840,  Albert  Brisbane  came  forward  with  his  Americaniza- 
tion of  Charles  Fourier's  scheme  of  social  reorganization. 
Here  was  a  definite  plan,  patterned  on  what  seemed  to 
be  a  scientific  study  of  society  and  of  psychology. 
Brook  Farm  welcomed  it  and  tried  it.  Greeley  clothed 
himself  with  it  as  gladly  as  Pilgrim  put  on  the  armor  after 
emerging  from  the  slough  of  despond.  He  opened  the 


36  LABOR  AND   ADMINISTRATION 

columns  of  the  Tribune  to  Brisbane.  He  became  a 
director  of  the  North  American  Phalanx,  president  of 
the  national  society  of  Associationists  (Fourierists), 
editorial  propagandist  and  platform  expounder.  Total 
reorganization  of  society  based  on  harmony  of  interest ; 
brotherhood  of  capital,  labor  and  ability ;  a  substitute 
for  the  competition  which  enslaved  labor  in  spite  of  the 
natural  sympathy  of  the  capitalist  for  his  oppressed 
workmen;  faith  in  the  goodness  of  human  nature  if 
scientifically  directed,  —  these  were  the  exalted  ideas 
and  naive  assumptions  that  elicited  the  devotion  of 
Greeley  and  his  fellow  disciples  of  the  gospel  of  tran- 
scendentalism. 

Two  things  disabused  his  mind.  One  was  the  actual 
failure  and  bankruptcy  of  his  beloved  phalanxes;  the 
other  was  the  logic  and  agitation  of  the  workingmen. 
The  higher  idealism  dissolved  like  a  pillar  of  cloud,  but 
it  had  led  the  way  to  the  solid  ground  of  the  lower 
idealism.  What  were  the  origins  of  this  lower  idealism? 

Three  years  ago,  at  Newcastle-on-Tyne,  in  England, 
in  the  company  of  a  workingman  official  of  a  trade  union, 
I  visited  the  thousand  acres  of  moorland  belonging  to 
the  mediaeval  city  and  now  kept  open  as  a  great  play- 
ground within  the  modern  city.  My  trade-union  official 
showed  me  the  thousands  of  workingmen  and  their 
families  enjoying  themselves  in  the  open  air.  I  asked 
him  about  the  fifty  or  a  hundred  cows  that  I  saw  calmly 
eating  grass  in  the  midst  of  this  public  park.  He  ex- 
plained that  these  cattle  belonged  to  the  descendants 
of  the  ancient  freemen  of  Newcastle,  who,  in  return  for 
defending  the  town  against  the  Scots,  had  been  granted 
rights  of  pasturage  outside  the  town.  He  said  there  had 
recently  been  a  great  struggle  in  Newcastle,  when  these 


IDEALISTIC   INTERPRETATION   OF  HISTORY     37 

freemen  wanted  to  enclose  the  moor,  to  lease  it  for  culti- 
vation and  to  divide  the  rents  among  themselves.  The 
workingmen  of  the  city  rose  up  as  one  man  and  stopped 
this  undertaking.  But  they  could  not  get  rid  of  the  cows. 

One  hundred  and  thirty  years  before  this  time,  in  the 
year  1775,  Newcastle  had  seen  a  similar  struggle.  At 
that  time  the  freemen  were  successful ;  they  succeeded 
in  having  the  rentals  from  a  part  of  the  moor,  which  had 
been  enclosed  and  leased,  paid  over  in  equal  parts  to  each 
of  them.  Thomas  Spence,  netmaker,  thereupon  con- 
ceived an  idea.  He  read  a  paper  before  the  Philosophical 
Society  of  Newcastle,  proposing  that  all  the  land  of 
England  should  be  leased  and  the  proceeds  divided  equally 
among  all  the  people  of  England.  He  was  promptly 
expelled  from  the  Philosophical  Society.  He  went  to 
London  and  published  his  scheme  in  a  book.1  Two 
generations  later,  in  1829,  the  book  came  to  New  York 
and  furnished  the  platform  for  the  first  workingmen's 
political  party.2  This  party  Americanized  Spence  by 
amending  the  Declaration  of  Independence.  They 
made  it  read :  "All  men  are  equal,  and  have  an  inalien- 
able right  to  life,  liberty  and  property." 

George  Henry  Evans,  also  Englishman  by  birth  but 
American  by  childhood  and  by  apprenticeship  in  a  print- 
ing-office at  Ithaca,  started  a  paper,  the  Working  Man's 
Advocate,  in  1829,  and  became  the  thinker  of  the  work- 
ingmen's party.  Before  he  began  to  think  he  adopted 
the  motto  of  the  party  as  the  motto  of  his  paper :  "All 
children  are  entitled  to  equal  education;  all  adults 

1 J.  M.  Davidson,  "Four  Precursors  of  Henry  George,"  pp.  26  et  seq. 
Spence's  book  is  reprinted  by  E.  W.  Allen  (London,  1882),  under  the 
title,  "The  Nationalization  of  Land,  1775  and  1882." 

2  Working  Man's  Advocate,  June  8,  1844,  p.  i,  c.  i. 


,58  LABOR  AND  ADMINISTRATION 

to  equal  property ;  and  all  mankind  to  equal  privileges." 
He  soon  saw  his  mistake,  as  did  most  of  the  other  work- 
ingmen.  Every  individual  has  a  right  to  an  unlimited 
amount  of  that  kind  of  property  which  he  produces  by 
his  own  labor  and  without  aid  from  the  coerced  labor 
of  others.  Such  an  unlimited  right  is  consistent  with 
equality,  and  equal  right  to  property  can  therefore  be 
asserted  only  as  regards  that  which  is  not  the  product 
of  his  own  or  other's  labor,  namely,  land.  But  the  hold- 
ers of  the  existing  private  property  in  land  could  not 
be  displaced  without  a  violent  revolution.  This  Evans 
saw  from  the  violent  attacks  made  on  him  and  the  work- 
ingmen's  party.  But  there  was  an  immense  area  still 
belonging  to  the  people  and  not  yet  divided.  This  was 
the  public  domain.  There  man's  equal  right  to  land 
could  be  asserted.  He  sent  marked  copies  of  his  paper 
to  Andrew  Jackson  in  1832,  before  Jackson's  message 
on  the  sale  of  the  public  lands.  The  workingmen's 
party  disappeared  and  was  followed  by  the  trades' 
unions  of  1835  and  1836.  The  sudden  rise  of  prices  and 
the  increased  cost  of  living  compelled  labor  to  organize 
and  strike  throughout  the  eastern  cities,  from  Washing- 
ton to  Boston.  These  strikes  were  for  the  most  part 
successful ;  but  the  workmen  saw  prices  and  rents  go  up 
and  swallow  more  than  the  gains  achieved  by  striking. 
Evans  pointed  out  the  reason  why  their  efforts  were 
futile.  The  workingmen  were  bottled  up  in  the  cities. 
Land  speculation  kept  them  from  taking  up  vacant  land 
near  by  or  in  the  West.  If  they  could  only  get  away 
and  take  up  land,  then  they  would  not  need  to  strike. 
Labor  would  become  scarce.  Employers  would  advance 
wages ;  landlords  would  reduce  rents.  Not  for  the  sake 
of  those  who  moved  West  did  Evans  advocate  freedom 


IDEALISTIC   INTERPRETATION    OF  HISTORY     39 

of  the  public  lands,  but  for  the  sake  of  those  who  re- 
mained East.  This  was  the  idea  that  he  added  to  the 
idea  of  Andrew  Jackson  and  Andrew  Johnson.  Theirs 
was  the  squatter's  idea  of  the  public  domain  —  territory 
to  be  occupied  and  defended  with  a  gun,  because  the 
occupant  was  on  the  ground.  His  was  the  idealistic 
view  of  the  public  domain  —  the  natural  right  of  all  men 
to  land,  just  as  to  sunlight,  air  and  water.  The  work- 
ingmen  of  the  East  were  slaves  because  their  right  to 
land  was  denied.  They  were  slaves,  not  to  individual 
masters,  like  the  negroes,  but  to  a  master  class  which 
owned  their  means  of  livelihood.  Freedom  of  the  public 
lands  would  be  freedom  for  the  white  slave.  Even  the 
chattel  slave  would  not  be  free  if  slavery  were  abolished 
without  providing  first  that  each  freedman  should  have 
land  of  his  own.  Freedom  of  the  public  lands  should 
be  established  before  slavery  was  abolished. 

These  views  were  not  original  with  Evans.  They  were 
the  common  property  of  his  fellows,  born  of  their  common 
experience,  formulated  in  their  mutual  intercourse  and 
expressed  in  the  platforms  of  their  party  and  the  res- 
olution of  their  trades'  unions.  Thus  at  the  first  con- 
vention of  the  National  Trades'  Union  in  1834,  one  of 
the  resolutions  recited 

that  this  Convention  would  the  more  especially  reprobate  the 
sale  of  the  public  lands,  because  of  its  injurious  tendency  as  it 
affects  the  interests  and  independence  of  the  laboring  classes,  in- 
asmuch as  it  debars  them  from  the  occupation  of  any  portion  of 
the  same,  unless  provided  with  an  amount  of  capital  which  the 
greater  portion  of  them,  who  would  avail  themselves  of  this  aid 
to  arrive  at  personal  independence,  cannot  hope  to  attain,  owing 
to  the  many  encroachments  made  upon  them  through  the  re- 
duction in  the  wages  of  labor  consequent  upon  its  surplus  quantity 
in  the  market,  which  surplus  would  be  drained  off,  and  a  demand 


40  LABOR  AND  ADMINISTRATION 

for  the  produce  of  mechanical  labor  increased,  if  these  public 
lands  were  left  open  to  actual  settlers.1 

But  it  was  Evans,  mainly,  who  gathered  these  ideas 
together  and  framed  them  into  a  system.  He  and  his 
disciple,  Lewis  Masquerier,  worked  out  the  three  cardinal 
points  of  a  natural  right:  equality,  inalienability,  in- 
dividuality.2 Men  have  equal  rights  to  land  because 
each  man  is  a  unit.  This  right  is  inalienable :  a  man  can- 
not sell  or  mortgage  his  natural  right  to  land  nor  have 
it  taken  away  from  him  for  debt,  any  more  than  he  can 
sell  himself  or  be  imprisoned  for  debt.  This  right  be- 
longs to  the  individual  as  such,  not  to  corporations  or 
associations.  Here  was  his  criticism  of  communism 
and  Fourierism.  Establish  the  individual  right  to  the 
soil,  and  then  men  will  be  free  to  go  into,  or  stay  out  of, 
communities  as  they  please.  Association  will  then  be 
voluntary,  not  coercive,  as  Fourierism  would  make  it. 
Thus  did  the  communistic  agrarianism  of  Thomas  Spence 
and  of  the  Working  Men's  Party  of  1829  filter  down  into 
the  individualistic  idealism  of  American  labor  reform 
in  1844. 

When  the  labor  movement  broke  down  with  the  panic 
of  1837,  Evans  retired  to  a  farm  in  New  Jersey,  but  kept 
his  printing-press.  When  the  labor  movement  started 
up  again  in  1844,  ne  returned  to  New  York  and  again 
started  his  paper,  the  Working  Man's  Advocate,  later 
changing  the  name  to  Young  America.  He  and  his 
friends  organized  a  party  known  as  National  Reformers, 
and  asked  the  candidates  of  all  other  parties  to  sign  a 

1  The  Man,  Aug.  30,  1834. 

2  Reprinted   in  Masquerier,   "  Sociology,   or  the  Reconstruction  of 
Society,  Government  and  Property,"  New  York,  1877,  pp.  68  et  seq.  — 
See  "  Doc.  Hist.,"  Vol.  VII,  pp.  289-293. 


IDEALISTIC   INTERPRETATION  OF  HISTORY    41 

pledge  to  vote  for  a  homestead  law.  If  no  candidate 
signed,  they  placed  their  own  tickets  in  the  field.  They 
printed  pamphlets,  one  of  which, "  Vote  Yourself  a  Farm," 
was  circulated  by  the  hundred  thousand.  In  1845  they 
united  with  the  New  England  Working  Men's  Associa- 
tion to  call  a  national  convention,  which,  under  the  name 
of  the  Industrial  Congress,  held  sessions  from  1845  to 
1856.  The  one  plank  in  the  platform  of  the  New  Eng- 
land Working  Men's  Association  had  been  a  demand 
for  a  ten-hour  law,  and  the  two  planks,  land  reform  and 
ten  hours  for  labor,  became  the  platform  of  the  In- 
dustrial Congress.  Through  the  New  England  Associa- 
tion the  Brook  Farmers  and  other  Fourierists  came  into 
the  land-reform  movement. 

It  was  in  the  latter  part  of  1845  that  Greeley  began  to 
notice  the  homestead  agitation.  In  the  Tribune 1  he 
wrote  an  editorial  beginning  with  his  recollections  of 
the  workingmen's  party  which  he  had  found  fourteen 
years  before  when  he  came  to  New  York.  Now,  he  said, 
there  had  come  into  existence  "  a  new  party  styled 
'  National  Reformers  '  composed  of  like  materials  and 
in  good  part  of  the  same  men  with  the  old  Working  Men's 
Party."  He  then  describes  their  scheme  of  a  homestead 
law  and  adds : 

Its  objects  are,  the  securing  to  every  man,  as  nearly  as  may  be,  a 
chance  to  work  for  and  earn  a  living;  secondly,  the  discourage- 
ment of  land  monopoly  and  speculation,  and  the  creation  of  a 
universally  land-holding  People,  such  as  has  not  been  since  the 
earlier  and  purer  days  of  the  Israelite  Commonwealth.  .  .  .  Yet 
we  are  not  prepared  to  give  it  our  unqualified  approval.  The 
consequences  of  such  a  change  must  be  immense.  .  .  .  We 
cannot  see  it  lightly  condemned  and  rejected.  Will  not  those 
journals  which  have  indicated  hostility  to  this  project  oblige  us  by 

1  Weekly  Tribune,  Nov.  29,  1845,  P-  5>  c.  5. 


42  LABOR  AND   ADMINISTRATION 

some  real  discussion  of  its  merits  ?  Calling  it  "  Agrarian,"  and  its 
advocates  "  Empire-Club  men  "  and  "  Butt-Enders  "...  does  not 
satisfy  us,  nor  will  it  satisfy  the  people.  .  .  . 

Evans,  in  his  Young  America,  commented  on  this 
editorial,  and  especially  on  Greeley's  assertion  that  the 
workingmen's  measures  had  not  sooner  attracted  at- 
tention because  they  had  been  put  forth  under  what 
he  called  "  unpopular  auspices."  Evans  said : 

All  reforms  are  presented  under  "unpopular  auspices,"  because 
they  are  presented  by  a  minority  who  have  wisdom  to  see  and 
courage  to  avow  the  right  in  the  face  of  unpopularity;  and  all 
reforms  are  pushed  ahead  by  popularity  hunters  as  soon  as  the 
pioneers  have  cleared  the  way.  I  do  not  mean  to  class  the  editor 
of  the  Tribune  amongst  the  popularity  hunters,  but  simply  to 
express  a  truth  called  forth  by  his  rather  equivocal  designation 
of  that  enlightened  and  patriotic  body  of  men  who,  if  the  history 
of  this  State  and  Union  be  ever  truly  written,  will  be  prominent 
in  it  as  the  "Working  Men's  Party."1 

Five  months  later  Greeley  definitely  committed  him- 
self to  the  workingmen's  platform  and  to  the  reasoning 
with  which  they  supported  it. 

The  freedom  of  the  public  lands  to  actual  settlers,  and  the  limi- 
tation of  future  acquisitions  of  land  to  some  reasonable  amount, 
are  also  measures  which  seem  to  us  vitally  necessary  to  the  ulti- 
mate emancipation  of  labor  from  thraldom  and  misery.  What  is 
mainly  wanted  is  that  each  man  should  have  an  assured  chance 
to  earn,  and  then  an  assurance  of  the  just  fruits  of  his  labors.  We 
must  achieve  these  results  yet ;  we  can  do  it.  Every  new  labor- 
saving  invention  is  a  new  argument,  an  added  necessity  for  it. 
And,  so  long  as  the  laboring  class  must  live  by  working  for  others, 
while  others  are  striving  to  live  luxuriously  and  amass  wealth  out 
of  the  fruits  of  such  labor,  so  long  the  abuses  and  sufferings  now 
complained  of  must  continue  to  exist  or  frequently  reappear.  We 
must  go  to  the  root  of  the  evil.2 

1  Young  America,  Nov.  29,  1845. 

2  Weekly  Tribune,  May  2,  1846. 


IDEALISTIC   INTERPRETATION   OF  HISTORY      43 

From  the  date  when  Greeley  took  up  the  measure,  it 
advanced  throughout  the  Northern  states  by  bounds. 
He  used  precisely  the  language  and  arguments  of  the 
Working  Man's  Advocate. 

The  National  Reformers  and  the  Industrial  Congress 
had  worked  out  logically  three  kinds  of  legislation  cor- 
responding to  Evans's  three  cardinal  points  of  man's 
natural  right  to  the  soil.  These  were  land  limitation, 
based  on  equality;  homestead  exemption,  based  on 
inalienability;  freedom  of  the  public  lands,  based  on 
individuality. 

In  order  that  the  rights  of  all  might  be  equal,  the  right 
of  each  must  be  limited.  For  the  older  states  it  was 
proposed  that  land  limitation  should  take  effect  only  on 
the  death  of  the  owner.  Land  was  not  to  be  inherited 
in  larger  quantities  than  160  or  320  acres.  Wisconsin 
was  the  only  state  in  which  this  measure  got  as  far  as 
a  vote  in  the  legislature,  that  of  1851,  where  it  was  carried 
in  the  lower  house  by  a  majority  of  two  votes,  but  was 
defeated  on  a  final  vote.1  The  struggle  was  exciting, 
and  Greeley  watched  it  eagerly.  Then  he  wrote : 

Well,  this  was  the  first  earnest  trial  to  establish  a  great  and  salu- 
tary principle ;  it  will  not  be  the  last.  It  will  yet  be  carried,  and 
Wisconsin  will  not  need  half  so  many  poorhouses  in  1900  as  she 
would  have  required  if  land  limitation  had  never  been  thought  of.2 

The  measure  was  brought  up  in  the  New  York  Legislature 
and  was  vigorously  advocated  by  Greeley,  but  without 
action. 

The  second  kind  of  legislation,  based  on  man's  natural 
right  to  the  soil,  was  homestead  exemption.  Projects  of 

1  J.  G.  Gregory,  "Land  Limitation,  a  Wisconsin  Episode  of  1848  to 
1851,"  Parkman  Club  Papers,  Vol.  II, 

2  Tribune ,  March  27,  1851. 


44  LABOR  AND  ADMINISTRATION 

this  class  were  far  more  successful  than  those  looking 
to  the  limitation  of  holdings.  Exemption  legislation 
swept  over  all  the  states,  beginning  with  Wisconsin  in 
1847,*  Dut  in  mutilated  form.  The  workingmen  de- 
manded absolute  inalienability  for  each  homestead,  as 
complete  as  that  of  the  nobility  of  Europe  for  each  estate. 
But  the  laws  actually  enacted  have  not  prohibited  sale 
or  mortgage  of  the  homestead,  as  Evans  proposed. 
They  have  merely  prohibited  levy  and  execution  on 
account  of  debts  not  secured  by  mortgage.  Voluntary 
alienation  is  allowed.  Coercive  alienation  is  denied. 
Greeley  and  the  workingmen  would  have  disallowed  both. 

Freedom  of  the  public  lands  was  the  third  sort  of 
legislation  demanded.  Every  individual  not  possessed 
of  1 60  acres  of  land  should  be  free  to  get  his  equal  share 
in  fee  simple  out  of  the  public  domain  without  cost. 
The  public  domain,  it  was  argued,  belongs,  not  to  the 
states  nor  to  the  collective  people  of  all  the  states 
nor  to  the  land-owners  and  taxpayers  of  the  states,  but 
to  each  individual  whose  natural  right  has  not  as  yet 
been  satisfied.  America  is  fortunate  in  having  this 
vast  domain  unoccupied.  Here  all  the  cardinal  points 
of  a  natural  right  can  be  legalized  without  damaging 
vested  rights :  individuality,  by  private  property  with- 
out cost;  equality,  by  limitation  to  160  acres;  inalien- 
ability, by  homestead  exemption.  This  was  the  idealistic 
vision  in  1844  of  the  Republican  party's  first  great  act 
in  1862. 

Greeley  espoused  all  of  these  measures.     He  himself 

1  The  legislation  of  Texas  in  1829  and  1837  was  entirely  different  in 
character  and  motive.  Somewhat  similar  laws  had  been  adopted  in 
Mississippi,  Georgia,  Alabama,  and  Florida  prior  to  1845  as  a  result  of 
the  panic  of  1837. 


IDEALISTIC    INTERPRETATION   OF  HISTORY     45 

introduced  a  homestead  bill  in  Congress  in  1848.  He 
urged  land  limitation  and  homestead  exemption  upon  the 
state  legislatures.  The  Tribune  carried  his  message 
throughout  the  North  and  prepared  the  mind  of  the 
people  for  the  constructive  work  of  the  future. 

I  might  speak  of  others  who  helped  to  carry  the  work- 
ingmen's  idealism  into  Republican  reality.  I  will 
mention  only  Galusha  A.  Grow,  the  "father  of  the  Re- 
publican party,"  and  Alvan  E.  Bovay,  the  disciple  of 
Evans. 

Galusha  Grow's  first  great  speech  in  Congress,  in  1852, 
on  Andrew  Johnson's  homestead  bill,  was  printed  by 
him  under  the  title  "  Man's  Right  to  the  Soil,"  and  was 
merely  an  oratorical  transcript  from  the  Working  Man's 
Advocate. 

The  other  less  distinguished  father  was  Alvan  E. 
Bovay.  For  him  has  been  claimed  the  credit  of  first 
suggesting  to  Greeley  the  name  Republican  party,  and 
of  bringing  together  under  that  name  the  first  little 
group  of  men  from  the  Whig,  Democratic,  and  Free  Soil 
parties  at  Ripon,  Wisconsin,  in  I854.1  Bovay  had  moved 
to  Wisconsin  in  1850.  Before  that  time  he  had  been 
^associated  with  Evans  and  with  the  workingmen's 
party  in  New  York,  almost  from  its  beginning  in  1844. 
He  was  secretary,  treasurer  and  delegate  to  the  Indus- 
trial Congress.  It  was  in  New  York  that  he  became 
acquainted  with  Greeley.  Bovay's  speeches  were  re- 
ported at  length  in  the  Working  Man's  Advocate  and 
Young  America,  and  his  letters  frequently  appeared  in 
the  Tribune.  Whether  he  was  the  only  father  of  the 

1  Curtis,  "History  of  the  Republican  Party,"  Vol.  I,  p.  173.  There 
were  doubtless  other  spots  of  independent  origin.  See  A.  J.  Turner, 
"Genesis  of  the  Republican  Party"  (1898;  pamphlet). 


46  LABOR  AND   ADMINISTRATION 

party  or  not,  it  is  significant  that  it  was  these  early  views 
on  the  natural  right  to  land,  derived  from  Evans  and 
the  workingmen,  that  appeared  in  the  Republican  party 
wherever  that  party  sprang  into  being.  It  is  also  an 
interesting  fact  that  the  workingmen  were  accustomed 
to  speak  of  theirs  as  the  true  Republican  party,  and  that 
Evans,  in  his  paper  in  1846,  predicts  that  the  National 
Reformers  mark  the  beginning  of  the  period  when  there 
"  will  be  but  two  parties,  the  great  Republican  Party 
of  Progress  and  the  little  Tory  Party  of  Holdbacks."  1 

Greeley  also  took  up  the  ten-hour  plank  of  the  work- 
ingmen's  party.  Prior  to  1845,  under  the  influence  of 
Fourierism,  he  had  opposed  labor  legislation.  In  1844 
he  had  written : 

The  relations  of  Labor  and  Capital  present  a  vast  theme,  .  .  . 
Government  cannot  intermeddle  with  them  without  doing  great 
mischief.  They  are  too  delicate,  complex  and  vitally  important 
to  be  trusted  to  the  clumsy  handling  of  raw  and  shallow  legislators. 
.  .  .  The  evils  .  .  .  are  Social,  not  Political,  and  are  to  be 
reached  and  corrected  by  Social  remedies.  .  .  .  Legislation  to 
correct  such  abuses  can  seldom  do  much  good  and  will  often  do 
great  harm.  .  .  .2 

His  idea  of  the  harmony  of  interests  is  seen  in  his  hope 
that  employers  would  reduce  the  hours  of  labor  by  agree- 
ment. "  We  do  hope  to  see  this  year,"  he  wrote  in 
1844,  "  a  general  convention  of  those  interested  in  Fac- 
tory Labor  to  fix  and  declare  the  proper  hours  of  labor, 
which  all  shall  respect  and  abide  by.  .  .  ."  3  And  when 
the  first  Industrial  Congress  was  about  to  assemble 
in  1845,  ne  wrote: 

1  Young  America,  March  21,  1846,  p.  2,  c.  3. 

2  Tribune,  Jan.  25,  1844,  p.  2,  c.  i ;  Feb.  16,  1844,  P-  2,  C.  2. 

3  Ibid.,  Feb.  16,  1844,  p.  2,  c.  j. 


IDEALISTIC  INTERPRETATION  OF  HISTORY     47 

An  Industrial  Congress,  composed  of  representatives  of  Em- 
ployers and  Workmen,  in  equal  numbers,  ought  to  be  assembled,  to 
regulate  generally  the  conditions  of  Labor.  ...  A  general  pro- 
vision, to  operate  coextensively  with  the  Union,  that  ten  hours 
shall  constitute  a  day's  work,  might  be  adopted  without  injury  to 
any  and  with  signal  benefit  to  all.  .  .  .l 

After  the  Congress  he  wrote  again : 

We  should  greatly  prefer  that  a  satisfactory  adjustment  were 
arrived  at  without  invoking  the  aid  of  the  law-making  power, 
except  possibly  in  behalf  of  minors.  We  believe  if  the  matter  is 
only  approached  in  the  right  way  by  those  interested,  discussed 
in  the  proper  spirit,  and  pursued  with  reasonable  earnestness  and 
perseverance,  that  legislation  will  be  found  superfluous.  .  .  . 
How  many  hours  shall  constitute  a  day's  or  a  week's  work  should 
be  settled  in  each  department  by  a  general  council  or  congress  of 
all  interested  therein,  whose  decision  should  be  morally  binding 
on  all  and  respected  by  our  Courts  of  Justice.2 

But,  with  the  failure  of  the  Industrial  Congress  to 
bring  in  the  employers,  Greeley  aggressively  adopted 
the  legislative  programme  of  the  workingmen  and  har- 
monized it  with  his  theory  of  the  protective  tariff. 
Before  this  he  had  written : 

If  it  be  possible  to  interpose  the  power  of  the  State  beneficently 
in  the  adjustment  of  the  relations  of  Rich  and  Poor,  it  must  be 
evident  that  internal  and  not  external  measures  like  the  Tariff, 
would  be  requisite.  A  tariff  affects  the  relation  of  country  with 
country  and  cannot  reasonably  be  expected  to  make  itself  potently 
felt  in  the  relations  of  class  with  class  or  individual  with  individ- 
uals.3 

Two  years  afterward,  when  New  Hampshire  had  adopted 
the  first  ten-hour  law  and  the  employers  were  violating 
it,  he  wrote: 

1  Tribune,  Sept.  30,  1845,  P-  2>  c.  i. 

2  Ibid.,  Dec.  27,  1845,  P-  4>  c-  4- 
8  Ibid.,  Aug.  2,  1845,  P-  3,  c.  i. 


48  LABOR  AND  ADMINISTRATION 

That  the  owners  and  agents  of  factories  should  see  this  whole 
matter  in  a  different  light  from  that  it  wears  to  us,  we  deem  un- 
fortunate but  not  unnatural.  It  is  hard  work  to  convince  most 
men  that  a  change  which  they  think  will  take  five  hundred  or  a 
thousand  dollars  out  of  their  pockets  respectively  is  necessary 
or  desirable.  We  must  exercise  charity  for  the  infirmities  of  poor 
human  nature.  But  we  have  regretted  to  see  in  two  or  three  of 
the  Whig  journals  of  New  Hampshire  indications  of  hostility  to 
the  Ten-Hour  regulation,  which  we  can  hardly  believe  dictated  by 
the  unbiassed  judgment  of  their  conductors.  .  .  .  What  show  of 
argument  they  contain  is-  of  the  regular  Free  Trade  stripe,  and 
quite  out  of  place  in  journals  favorable  to  Protection.  Complaints 
of  legislative  intermeddling  with  private  concerns  and  engage- 
ments, —  vociferations  that  Labor  can  take  care  of  itself  and  needs 
no  help  from  legislation  —  that  the  law  of  Supply  and  Demand 
will  adjust  this  matter,  etc.,  etc.,  —  properly  belong  to  journals 
of  the  opposite  school.  We  protest  against  their  unnatural  and 
ill-omened  appearance  in  journals  of  the  true  faith.  ...  To 
talk  of  the  Freedom  of  Labor,  the  policy  of  leaving  it  to  make  its 
own  bargains,  etc.,  when  the  fact  is  that  a  man  who  has  a  family 
to  support  and  a  house  hired  for  the  year  is  told,  "  If  you  will 
work  thirteen  hours  per  day,  or  as  many  as  we  think  fit,  you  can 
stay ;  if  not,  you  can  have  your  walking  papers :  and  well  you  know 
that  no  one  else  hereabout  will  hire  you  " — is  it  not  most  egregious 
flummery  ? 1 

The  foregoing  quotations  from  Greeley  depict  the  evo- 
lution of  the  theory  of  the  protective  tariff  out  of  the 
Whig  theory  into  the  Republican  theory.  The  Whig 
idea  was  protection  for  the  sake  of  capital.  Greeley's 
idea  was  protection  for  the  sake  of  labor.  The  Whigs 
did  not  approve  of  Greeley,  but  his  theory  was  useful 
in  1840,  and  in  that  year  they  hired  him  to  get  out 
campaign  literature.  At  that  time  he  was  a  higher 
idealist,  a  transcendentalist,  a  zealot  for  harmony  of 
interests,  and  believed  that  capitalists  would  voluntarily 
1  Weekly  Tribune,  Sept.  18,  1847,  P-  5,  c.  2. 


IDEALISTIC  INTERPRETATION   OF  HISTORY     49 

cooperate  with  labor  and  need  not  be  coerced  by  legis- 
lation. He  was  disabused  of  this  notion  when  he  saw 
the  way  in  which  employers  treated  the  ten-hour  move- 
ment. Whatever  the  workingmen  had  gained  on  this 
point,  they  had  gained  against  the  Whigs,  through 
Jackson,  Van  Buren  and  the  Democrats.  Modifying 
his  faith  in  harmony  of  interests,  he  took  up  legislation 
in  behalf  of  class  interests  and  rounded  out  a  theory  of 
labor  legislation  by  the  states  to  supplement  protective 
tariff  legislation  by  Congress.  This  became  the  Re- 
publican theory  of  protection  in  place  of  the  dying  Whig 
theory.  True,  the  Republican  party  has  not  always 
lived  up  to  this  theory;  but  its  defection  is  a  further 
illustration  of  the  American  practice  of  using  a  theory 
of  human  rights  to  augment  property  rights.  And, 
after  all,  it  has  been  the  Republican  states  that  have  led 
the  way  in  labor  legislation. 

I  have  attempted  to  sketch  the  origin  and  evolution 
of  the  two  species  of  idealism  that  struggled  for  existence 
in  this  epoch  of  American  history.  This  biology  of  ideas 
exhibits  both  adaptation  to,  and  rejection  of,  the  con- 
temporaneous economic  development.  The  transcen- 
dentalism of  New  England,  with  its  humanized  God  and 
its  deified  man,  was  rather  a  protest  against,  than  a 
product  of,  the  new  economic  conditions.  As  the  years 
advanced  and  industrial  anarchy  deepened,  the  protest 
turned  to  reconstruction.  But  the  tools  and  materials 
for  the  new  structure  were  not  politics  and  legislation, 
but  an  idealized,  transcendental  workingman.  Tran- 
scendentalism resurrected  man,  but  not  the  real  man. 
It  remained  for  the  latter,  the  man  in  the  struggle,  to 
find  his  own  way  out.  By  failure  and  success,  by  defeat, 
by  victory  often  fruitless,  he  felt  along  the  line  of  ob- 


So  LABOR  AND  ADMINISTRATION 

stacles  for  the  point  of  least  resistance.  But  he,  too, 
needed  a  philosophy.  Not  one  that  would  idealize  him, 
but  one  that  would  help  him  win  a  victory.  Shorter 
hours  of  labor,  freedom  to  escape  from  economic  oppres- 
sion, —  these  were  the  needs  that  he  felt.  His  inalienable 
"  natural  right "  to  life,  liberty,  land  and  the  products 
of  his  own  labor,  —  this  was  his  philosophy.  Politics 
and  legislation  were  his  instruments. 

It  is  easy  to  show  that  "  natural  rights  "  are  a  myth, 
but  they  are  a  fact  of  history.  It  was  the  workingmen's 
doctrine  of  natural  rights  that  enabled  the  squatter  to 
find  an  idealistic  justification  for  seizing  land  and  holding 
it  in  defiance  of  law.  "  Natural  right,"  here  as  always, 
was  the  effective  assailant  of  legal  right.  Had  it  not 
been  for  this  theoretic  setting,  our  land  legislation  might 
have  been  piecemeal  and  opportunist  like  the  English 
—  merely  a  temporizing  concession  to  the  squatters 
on  account  of  the  difficulty  of  subduing  them  by  armed 
force.  Such  an  opportunist  view,  without  the  justi- 
fication of  natural  rights,  could  not  have  aroused  en- 
thusiasm nor  created  a  popular  movement,  nor  furnished 
a  platform  for  a  political  party.  The  Republican  party 
was  not  an  anti-slavery  party.  It  was  a  homestead 
party.  On  this  point  its  position  was  identical  with 
that  of  the  workingmen.  Just  because  slavery  could  not 
live  on  one-hundred-and-sixty-acre  farms  did  the  Re- 
publican party  come  into  conflict  with  slavery. 

Thus  has  the  idealism  of  American  history  both  issued 
from  and  counteracted  its  materialism.  The  editorial 
columns  of  the  Tribune  from  1841  to  1854  are  its  docu- 
mentary records.  There  we  see  the  two  main  currents 
of  idealism  passing  through  the  brain  of  Greeley  and 
coming  out  a  constructive  programme  for  the  reorganiza- 
tion of  society. 


CHAPTER  V 

ECONOMISTS   AND    CLASS   PARTNERSHIP1 

THE  reason  given  by  President  Hadley  why  the 
economist  should  exert  more  influence  in  politics  is  that 
he  represents  the  nation  as  a  whole,  and  in  the  conflict 
of  class  interests  it  is  important  for  social  prosperity 
that  there  be  one  class  of  leaders  who  will  keep  in  view 
the  permanent  welfare  of  the  aggregate.  The  econo- 
mist should  not  descend  to  be  the  spokesman  of  a  class, 
like  the  politician,  but  he  should  retain  his  position  as 
spokesman  of  all. 

Whatever  meaning  may  be  given  in  practice  to  this 
statement,  I  have  no  doubt  that  all  economists  of  stand- 
ing have  guided  themselves  by  a  sincere  desire  to  pro- 
mote the  best  permanent  welfare  of  society.  They 
would  certainly  be  unworthy  the  name  of  political 
economists,  and  much  more  unworthy  a  hearing  from 
the  public,  if  they  were  not  animated  by  such  a  desire. 
And  it  may  turn  out  that,  by  a  sufficient  refinement  of 
the  definitions  of  "  economist "  and  "  class,"  we  may 
reach  the  point  where  there  will  be  no  difference  between 
our  views.  But,  as  it  seems  to  me  at  present,  there  is 
a  practical  difference  which  will  appear  as  I  proceed. 

1  Discussion  at  the  meeting  of  the  American  Economic  Association, 
Dec.,  1899,  on  the  annual  address  of  the  President  of  the  Associa- 
tion. The  topic  of  President  A.  H.  Hadley's  address  was  "Economic 
Theory  and  Political  Morality,"  and  the  general  tenor  of  the  address,  as 
it  seemed  to  me,  is  indicated  in  this  discussion.  Both  papers,  along 
with  other  discussions  upon  the  address,  are  published  in  the  Proceedings 
of  the  Twelfth  Annual  Meeting,  pp.  45  ff. 

Si 


52  LABOR  AND  ADMINISTRATION 

The  subject  as  introduced  by  President  Hadley  last 
year,  and  as  now  repeated,  brings  up  the  practical  ques- 
tion as  to  the  method  by  which  the  economist  can  acquire 
a  positive  influence  on  legislators,  judges  and  executives 
in  the  formation  and  execution  of  laws.  In  his  former 
paper 1  he  made  the  distinction  between  economists  who 
devote  themselves  to  social  theory  and  the  theory  of 
utility  and  those  who  devote  themselves  to  the  practical 
questions  of  current  politics.  Economists  in  our  day 
had  lost  their  influence  in  politics  because  they  had 
turned  from  practical  questions  to  theoretical  questions. 
I  take  it  that  we  are  discussing  the  same  question  now. 
The  question  is  not,  what  should  be  the  position  of  the 
speculative  philosopher,  but  of  the  practical  economist. 
It  is  a  question  of  method. 

Taking  this  position,  it  seems  to  me  quite  plain  that 
to  have  influence  he  must  have  the  ear  either  of  those 
who  control  legislation  or  of  those  who  are  striving  to 
get  control.  To  do  this  his  doctrines,  and  especially 
their  practical  application,  must  be  in  harmony  with 
the  interests  of  one  side  or  the  other.  Neither  side  will 
consult  him  on  the  ground  of  his  claim  to  represent  the 
nation  as  a  whole.  They  consult  him  because  he  is  the 
one  man  who  shows  to  the  nation  as  a  whole  that  the 
interests  of  that  class  are  for  the  permanent  interests  of 
the  whole. 

Class  Motives.  —  It  will  doubtless  be  agreed  that,  if 
the  economist  is  to  have  influence,  he  must  strike  some 
dominant  motive  in  the  minds  of  those  who  listen  to 
him,  or  he  must  educate  such  a  motive.  There  are  two 
motives  which  pertain  to  this  question  —  they  may  be 

1  "  The  Relation  between  Economics  and  Politics,"  Economic  Studies, 
Vol.  IV,  No.  i,  Feb.,  1899. 


ECONOMISTS   AND   CLASS   PARTNERSHIP      53 

called  the  motive  of  patriotism  or  public  spirit,  and  the  j 
motive  of  class  interest.  These,  I  take  it,  are  both  dif-  ! 
ferent  from  self-interest.  I  would  line  up  these  motives 
along  with  those  distinctions  to  which  President  Hadley 
has  called  our  attention.  I  should  say  the  motive  of 
patriotism  is  the  motive  to  promote  "  the  permanent  in- 
terests of  the  community,"  i.e.  the  motive  correspond- 
ing to  his  "  theory  of  prosperity."  The  motive  of  self- 
interest  is  the  motive  dominant  in  each  of  his  two  cats 
which  struggle  for  one  bird,  each  of  his  bosses  who 
compete  for  one  workman.  The  motive  of  class  interest 
is  midway.  It  is  more  than  self-interest,  because  it 
means  that  the  two  bosses  or  the  two  cats  must  combine 
their  forces,  must  for  the  time  cease  their  individual 
struggle,  and  must  join  together  for  common  action 
against  another  class.  Class  interest  takes  a  man 
partly  out  of  himself  and  gives  him  the  spirit  of  sym- 
pathy and  self-sacrifice  for  the  other  members  of  his 
class  against  whom  he  may  hitherto  have  been  fighting. 
Patriotism  takes  him  still  further  from  self-interest  —  it 
leads  classes  and  parties  to  forget  class  struggles  and  to 
join  together  for  common  action  against  a  national  foe. 
Foreign  war  is  the  extreme  case  of  the  patriotic  motive. 
It  is  found,  however,  at  all  times,  but  is  not  so  spectacular. 
All  of  these  motives  exist  in  different  proportions  in 
different  individuals  and  in  different  proportions  in  the 
same  individual  at  different  times.  Which  is  the  most 
powerful?  That  depends  on  circumstances.  When 
there  is  no  national  or  class  struggle  at  its  crisis,  then 
individuals  settle  back  upon  their  self-interest.  If, 
however,  those  who  have  common  interests  find  them- 
selves imposed  upon  by  another  class  with  common  in- 
terests, then  their  class  interest  becomes  a  more  power- 


54  LABOR  AND   ADMINISTRATION 

ful  motive  than  self-interest.  As  a  matter  of  fact,  we 
find  that  economists  have  had  their  greatest  influence  at 
these  critical  points  of  class  struggle,  when  they  have 
helped  to  shape  the  legislation  of  a  class  just  acquiring 
power.  (Classical  economists,  1805-1845,  in  England. 
Protectionist  economists  in  United  States,  1840-1900.) 

In  a  free  country  the  patriotic  motive  is  the  most 
powerful  of  all  and  dominates  all  others  at  periods  of 
national  crisis.  The  reason  is  because  in  a  free  country 
all  classes  have  an  equal  share  in  government,  and  they 
feel  that  the  nation  is  the  guardian  of  all  their  other 
interests.  If  there  is  class  domination, — if  one  class  op- 
presses others,  and  the  others  have  given  up  hope  of 
getting  justice  and  a  share  in  the  government,  —  then 
class  interest  or  self-interest  remains  the  dominant  mo- 
tive, and  they  will  sullenly  see  their  country  defeated 
by  foreigners.  (Compare  United  States  with  Spain, 
Great  Britain  with  India.) 

Consequently  only  in  those  countries  where  the  class 
struggle  is  recognized  as  such,  and  where  the  govern- 
ment has  been  organized  in  such  a  way  as  to  give  hope 
of  fair  play  and  justice  to  all  the  different  class  interests^ 
is  it  possible  to  have  this  motive  of  patriotism  which 
looks  out  for  the  general  welfare.  Failure  to  recognize 
the  class  struggle  and  to  make  a  place  for  it  means  des- 
potism of  one  class  over  the  others.  It  is  to  the  interest 
of  the  dominant  class  to  refuse  to  recognize  this  struggle, 
and  the  economist  who  refuses  to  recognize  it  is  playing 
into  their  hands.  He  is  preparing  the  way  for  their 
despotic  rule,  and  that  means  the  crushing  out  of  the 
spirit  of  patriotism  in  the  excluded  classes.  If  the  econo- 
mist truly  represents  society  as  a  whole,  he  should 
strive  to  give  the  excluded  classes  a  larger  and  more  just 


ECONOMISTS   AND    CLASS   PARTNERSHIP      55 

legal  share  in  government  and  industry.  In  that  way 
he  would  cultivate  the  motive  of  patriotism,  which  is 
the  motive  to  which,  as  the  supposed  representative  of 
the  whole,  he  must  appeal. 

Class  Representation.  —  President  Hadley  has  with 
deep  insight  connected  in  this  discussion  the  two  insti- 
tutions of  representative  government  and  competition, 
both  of  which  he  asserts  have  broken  down  or  are  in 
process  of  disintegration.  First,  as  to  representation. 
I  should  hold  that  the  break-down  of  the  representative 
system  proceeds  from  exactly  the  opposite  cause  from 
the  one  he  mentions.  It  has  broken  down,  not  because 
it  represents  classes,  but  because  it  has  ceased  to  rep- 
resent classes.  At  the  time  of  its  greatest  glory,  of 
which  he  speaks  so  highly,  representative  government 
was  the  representation  of  an  exclusive  class,  the  cor- 
porations of  merchants  and  manufacturers  and  the  land- 
owners. The  wage-earners,  numbering  three-fourths 
to  four-fifths  of  the  present  voters,  were  excluded,  also 
Catholics,  Jews,  unbelievers.  Such  a  parliament  could 
indeed  come  together  to  confer,  compare  notes,  educate 
the  public  and  take  united  action.  There  are,  it  seems 
to  me,  two  fallacies  of  historical  interpretation  in  Presi- 
dent Hadley's  account  of  Parliament  and  Congress.  The 
first  is  in  seeming  to  hold  that  the  King  was  above  the 
party  or  class  system,  and  the  second  in  holding  that 
representation  of  localities  is  identical  with  representation 
of  classes. 

i.  He  holds  that  the  work  of  the  early  parliaments 
consisted  in  the  creation  of  a  "  united  public  sentiment 
of  the  English  people,"  and  in  rousing  them  to  "  resist 
the  extensions  of  the  royal  prerogative  to  which,  in  the 
absence  of  such  common  action,  they  must  separately 


56  LABOR  AND  ADMINISTRATION 

have  fallen  victims."  I  agree  with  this,  but  I  would 
point  out  that  what  Parliament  really  did  was  to  arouse 
the  middle  class  and  the  excluded  classes  generally  to 
unite  against  the  dominant  class,  and  that  dominant 
class  was  simply  the  party  of  prerogative,  or  the  court 
party,  with  the  King  as  its  boss.  The  King  was  not 
some  deus  ex  machina,  but  he  was  one  party  to  the  class 
struggle.  He  shared  his  prerogative  with  his  courtiers 
and  defenders,  in  the  form  of  monopolies,  benefices, 
offices,  privileges,  tax  exemptions,  land  titles  and  the 
like.  The  excluded  parties  and  classes  demanded  a  share 
of  these  privileges,  a  voice  in  the  government,  and  they 
succeeded  in  the  Bill  of  Rights,  which  in  1688  gave  Parlia- 
ment a  veto  on  the  King.  That  is,  it  gave  the  aristocracy 
and  the  corporations  of  the  towns  an  equal  voice  with 
the  king  in  framing  laws.  It  meant  the  forcible  admis- 
sion of  a  subordinate  class  or  party  into  sovereignty 
through  their  chosen  representatives,  and  this  is  what 
is  meant  when  we  say  that  England  was  transformed 
from  an  absolute  monarchy,  or  a  despotism,  to  a  consti- 
tutional monarchy.  A  constitutional  government  is 
one  that  recognizes  the  existence  of  antagonistic  classes 
and  opens  up  its  framework  to  the  equal  influence  of 
the  two  or  three  classes  in  the  form  of  the  mutual  veto 
—  the  King  with  a  veto  on  Parliament  and  Parliament 
with  a  veto  on  the  King. 

2.  This  brings  me  to  what  I  consider  the  second  his- 
torical fallacy,  the  assumed  identity  of  representa- 
tion of  localities  and  representation  of  classes.  When 
the  representative  system  originated,  it  was  primarily  a 
representation  of  organized  classes,  and  only  secondarily 
of  localities.  The  merchants'  and  manufacturers'  guilds 
and  corporations  of  the  towns  elected  their  representa- 


ECONOMISTS   AND    CLASS   PARTNERSHIP      57 

lives  in  exactly  the  same  way  as  a  private  corporation 
would  now  elect  its  president  or  attorney.  They  sent 
their  leading  men  to  Parliament,  and  if  they  did  not  have 
a  member  competent  they  chose  an  outsider  from  any 
part  of  the  kingdom,  just  as  they  might  choose  a  lawyer 
to  plead  their  cause.  Indeed,  the  early  parliaments  were 
strictly  national  conventions  of  merchants  and  manu- 
facturers which  sent  a  committee  occasionally  to  the 
King  with  petitions,  just  as  similar  associations  now 
petition  Congress.  They  finally  joined  with  the  similar 
conventions  of  smaller  land-owners,  and  the  two  together 
forced  permanent  recognition  with  a  veto  on  the  King, 
in  the  form  of  the  House  of  Commons. 

It  happened  that  this  representation  of  organized 
classes  was  also  a  representation  of  localities.  The  co- 
incidence was  an  accident.  It  was  because  the  suffrage 
was  limited  to  a  single  class  in  each  locality.  Only  the 
members  of  the  corporations  in  the  towns  and  the  land- 
owners in  the  county  could  vote.  Since  that  time  uni- 
versal suffrage  has  been  adopted  on  the  ground  that  the 
wage-earner  should  be  represented.  But  the  result  has 
been  simply  to  throw  several  antagonistic  classes  into 
the  same  constituency,  and  require  them  to  elect  one 
man  by  a  majority  vote  who  shall  represent  them  all. 
This  was  easy  enough  when  but  one  class  voted  by  itself. 
It  could  then  elect  its  own  leading  representative  man. 
But  to  throw  antagonistic  classes  into  the  same  pen  and 
require  them  to  elect  one  man  who  should  represent  all, 
compels  them  to  elect,  not  a  man  who  represents  a  class, 
but  a  compromise  candidate  who  represents  none.  The 
really  leading  class  representatives  have  enemies  in  other 
classes  and  cannot  get  a  majority.  The  compromise 
candidate  has  no  bitter  enemies,  and  he  has  no  en- 


58  LABOR  AND  ADMINISTRATION 

thusiastic  friends.  He  does  not  stand  for  principles  or 
convictions.  He  is  simply  the  tool  of  the  boss.  The 
boss  is  the  man  who  is  shrewd  in  manipulating  these 
class  antagonisms  and  in  selecting  those  compromise 
candidates,  who  can  get  a  majority  out  of  conflicting  in- 
terests. A  system  of  this  kind  does  not  represent  classes. 
It  represents  localities  and  irresponsible  bosses.  A  truly 
representative  assembly,  framed  on  the  basis  of  the  early 
parliaments  which  President  Hadley  approves,  would  be 
one  to  which  the  different  organized  classes  elected  their 
own  representatives  as  the  older  guilds  elected  their  mem- 
bers of  Parliament.  Let  the  labor  unions,  irrespective  of 
locality,  come  together  and  elect  their  members  of  Con- 
gress just  as  they  elect  the  presidents  and  secretaries  of 
their  unions.  They  would  then  elect  to  Congress  such 
men  as  Gompers,  Sargent,  Arthur,  Debs  and  the  like. 
These  would  be  the  true  representatives  of  the  wage- 
earning  class.  Let  the  bankers  elect  their  representa- 
tives by  themselves.  They  would  elect  men  like  Gage, 
J.  Pierpont  Morgan.  Let  the  trusts  elect  theirs.  They 
would  elect  Rockefeller,  Carnegie,  Havemeyer,  Flint,  or 
rather  they  would  elect  their  great  attorneys  like  Dill, 
Bourke  Cockran,  Joseph  H.  Choate.  The  railroads  would 
elect  Depew ;  the  express  companies  would  elect  Platt. 
The  Farmers'  Grange  would  send  its  president,  Aaron 
Jones ;  the  Farmers'  Alliance  would  send  its  president, 
Gardner ;  the  Anti- trust  League  would  send  its  president, 
Lockwood ;  and  so  on.  In  such  a  Congress  these  various 
interests  might  also  send  economists,  men  like  Gunton, 
Hadley,  Taussig,  on  one  side,  and  men  like  Bemis,  Ely, 
Henry  George,  on  the  other. 

Such  an  assembly  I  should  call  representative  in  the 
original  historical  sense  of  the  word.     It  would  not  be 


ECONOMISTS   AND    CLASS   PARTNERSHIP      59 

exactly  suited  to  modern  conditions,  because  the  suffrage 
has  been  given  to  many  classes  which  are  not  yet  or- 
ganized. But  it  illustrates  the  principle  of  true  repre- 
sentation. There  would  be  no  compromise  representa- 
tives. Each  class  would  be  represented  by  its  ablest 
and  authenticated  spokesmen.  There  would  be  no  op- 
portunity for  a  boss  behind  the  scenes,  who  could  him- 
self not  get  elected,  yet  who  would  be  able  to  name  the 
spineless  trimmers  who  now  pretend  to  represent  the 
people. 

Such  an  assembly  would  throw  a  very  different  light 
upon  the  question  of  compromise.  As  long  as  class 
antagonisms  really  exist,  they  will  assert  themselves,  and 
the  only  alternative  is  civil  war  and  class  domination, 
or  mutual  concession.  But  it  is  all  the  difference  in  the 
world  as  to  who  are  the  men  who  make  the  concessions. 
It  they  are  the  real  leaders  of  the  different  classes,  then 
we  may  look  for  broad-minded,  patriotic  compromises. 
For  the  true  leaders  of  a  class  must  have  two  leading 
qualities :  they  must  have  tenacity  of  purpose,  but  they 
must  also  understand  the  claims  of  the  opposing  class. 
That  is,  they  must  be  broad-minded  and  patriotic  enough 
to  see  that  civil  war  must  be  avoided,  that  other  classes 
have  rights,  and  that  a  point  gained  now  is  a  new  vantage 
ground  for  another  point  in  the  future.  These  are  the 
the  only  kind  of  men  that  can  permanently  lead  a  class 
to  victories.  Labor  unions  have  just  such  men  as  their 
leaders,  and  so  do  capitalists,  and  they  are  making  these 
compromises  every  day  in  industry  in  the  form  of  "  trade 
agreements."  What  is  needed  is  a  representative 
assembly  which  will  bring  together  these  leaders  with 
the  leaders  of  all  other  classes,  so  that  they  can  make 
similar  compromises  in  politics. 


60  LABOR  AND  ADMINISTRATION 

But,  on  the  other  hand,  President  Hadley  is  right  in 
criticising  the  present  log-rolling  kind  of  compromises. 
These  are  not  true  compromises.  They  are  made  by  men 
who  represent  nothing,  who  have  no  convictions,  no 
principles,  and  are  simply  usurpers  who  have  by  their 
cunning  gotten  possession  of  our  electoral  machinery. 
Their  so-called  compromises  are  only  secret  dickers. 
The  evil  is  mainly  a  mechanical  one  and  requires  a  re- 
adjustment of  governmental  machinery,  similar  to  that 
which  was  made  in  1688  by  the  Bill  of  Rights,  so  that 
all  classes  will  have  their  actually  representative  men 
in  legislation.  As  long  as  an  economist  does  not  rec- 
ognize the  existence  of  classes,  he  will  fail  to  see  the  need 
of  this  readjustment  of  electoral  machinery,  which  shall 
represent  classes. 

Class  Competition.  —  President  Hadley  has  drawn  a 
valid  distinction  between  competition  of  classes  and 
competition  of  individuals  within  a  class.  He  has  asserted 
that  the  kind  of  competition  which  economists  would 
see  perpetuated  is  that  between  individuals  within  a 
class,  by  means  of  which  the  other  classes  of  society  are 
benefited.  He  says  that  modern  civilized  communities 
have  so  regulated  the  struggle  for  existence  that  third 
parties  are  benefited.  This  is  unquestionably  true  as 
far  as  it  goes.  But  I  would  ask,  what  is  meant  by  the 
word  "  community  "  which  he  uses?  Is  it  "  society  as 
a  whole"  that  has  so  regulated  competition?  Society 
has  not  done  so.  On  the  contrary,  it  seems  to  me  that 
the  competition  of  individuals  within  a  class  has  been 
forced  upon  that  class  by  the  opposing  classes  in  society. 
If  a  class  were  left  to  itself,  its  members  would  come  to  an 
understanding.  They  would  get  rid  of  competition  be- 
tween themselves  and  would  agree  to  exploit  the  other 


ECONOMISTS   AND    CLASS   PARTNERSHIP      61 

classes  in  common.  Adam  Smith  says  that  capitalists 
are  always  in  a  tacit  agreement  to  keep  wages  down  to 
a  minimum.  The  way  in  which  competition  works  seems 
to  be  as  follows :  Members  of  the  same  class  are  in  com- 
petition with  each  other.  The  weaker  are  crushed  out. 
The  number  of  competitors  becomes  smaller  and  smaller. 
Finally  but  one  is  left.  The  entire  institution  becomes 
a  monopoly.  The  head  man  dominates  his  own  class  and 
dominates  all  other  classes.  This  phenomenon  has 
occurred  in  every  social  institution.  Feudalism  ended 
in  the  absolutism  of  the  principal  feudal  proprietor,  and 
we  call  the  institution  an  absolute  monarchy.  The  church 
ended  in  the  papacy.  Political  parties  have  ended  in 
the  concentration  of  power  in  the  hands  of  one  man,  or 
of  the  "  machine,"  and  we  call  it  "  boss  "  politics.  Busi- 
ness corporations  have  ended  in  concentration  in  the 
hands  of  a  small  number  of  directors  of  a  monopolized 
corporation,  and  we  call  it  a  "  trust."  The  principle  is 
universal. 

i.  When  this  monopoly  stage  of  an  institution  is 
reached,  there  are  three  possible  alternatives.  First, 
progress  may  stop.  The  leaders  of  the  class  may  hand 
down  their  power  to  successors.  In  national  government 
we  call  this  "  despotism."  In  politics  we  call  it  "  boss- 
ism."  In  industry  President  Hadley  would  perhaps 
call  it  "  trusteeism."  But  it  is  the  same  in  all.  It  is 
rule  by  the  monopolizing  head  of  a  single  class,  who  dis- 
tributes among  his  courtiers,  supporters  and  henchmen, 
the  prerogatives  of  his  position,  and  in  this  way  he 
attaches  them  to  his  interests. 

Such  a  system  of  absolutism  always  finds  its  de- 
fenders. But  they  always  defend  it  upon  the  ground 
that  it  is  the  best  thing  under  the  circumstances  for  the 


62  LABOR  AND  ADMINISTRATION 

nation  as  a  whole.  Bossuet  was  the  eloquent  court 
preacher  to  Louis  XIV.  He  believed  in  hereditary  ab- 
solutism. He  thought  the  selfish  wills  of  antagonistic 
classes  could  be  crushed  for  the  common  good  only  by 
the  absolutism  of  superior  force.  But  he  was  a  noble 
and  fearless  man.  He  saw  that  the  power  to  protect 
was  the  power  to  oppress.  He  preached  often  on  the 
"  duty  of  kings."  He  turned  to  Louis  and  said,  "  O, 
King,  use  your  power  easily,  for  it  is  given  to  you  of 
God  for  the  welfare  of  men.  Exercise  it  with  humility. 
Do  not  forget  justice,  for  God,  who  gives  you  irresponsible 
power  over  others,  holds  you  responsible  to  Him.  The 
greater  your  power,  the  more  severely  will  He  judge 
you  at  the  last  day." 

I  can  understand  such  an  attitude  of  mind.  I  can  un- 
derstand how  the  modern  economist  who  sees  that  our 
representative  government  has  broken  down  and  has 
fallen  into  the  hands  of  bosses;  who  sees  that  we  are 
compelled  to  govern  10,000,000  Asiatics  without  their 
consent  and  without  giving  them  a  share  in  our  govern- 
ment ;  who  sees  that  the  voters  in  our  cities  are  better 
governed  by  Platt  and  Croker  than  by  themselves ;  who 
sees  also  that  our  competitive  system  has  broken  down ; 
that  the  managers  of  our  great  monopolies  have  become 
"  trustees  "  in  more  than  the  "  accidental  application  of 
this  word,"  and  that  "  they  are  able  if  they  please  to 
misuse  this  power  to  the  detriment  of  others  without  be- 
ing immediately  overtaken  by  any  legal  or  commercial 
penalty  "  ;  I  can  see  how  the  modern  economist  who  sees 
these  new  developments  without  seeing  any  democratic 
solution  for  them,  should  in  a  noble  and  fearless  spirit 
become  court  preacher  to  the  political  bosses  and  the 
irresponsible  trustees.  He  says  to  them :  "  Natural  selec- 


ECONOMISTS   AND    CLASS   PARTNERSHIP      63 

tion  has  preserved  you  as  the  survival  of  the  fittest.  It 
has  given  these  Asiatics,  these  workingmen  and  farmers, 
into  your  keeping.  Remember  your  position  is  one  of 
trust.  You  are  free  from  competitors.  There  is  no 
legal  penalty  for  abuse  of  power.  You  are  not  responsible 
to  them.  I  do  not  know  what  God  will  do  in  the  matter. 
But  anyhow,  be  good  to  them.  Show  them  sympathy 
and  justice.  If  you  do  not,  I  shall  denounce  you." 

Now,  in  speaking  thus  I  admit  that  I  exaggerate  the 
position  of  President  Hadley,  as  he  views  it.  But  I  see 
no  other  outcome  of  his  position,  and  in  a  question  of 
this  kind  we  are  all  to  be  judged  by  the  practical  out- 
come of  our  teaching.1  I  have  no  doubt  that  an  econo- 
mist who  takes  this  position  will  accomplish  great  good 
for  society  as  a  whole.  He  will  have  an  influence  in 
politics.  But  notice  that  he  will  shut  out  from  political 
influence  all  the  economists  who  do  not  have  the  ear  of  the 
bosses  and  the  trusts.  He  is  the  defender  of  the  institu- 
tions by  which  these  men  have  gained  power.  As  such 
he  has  their  ear.  But  he  makes  a  distinction  between 
the  good  man  and  the  bad  man  who  possesses  the  power, 
between  their  good  and  bad  use  of  their  power.2  As  such 
he  is  their  needed  critic.  But  other  economists  who  do 
not  indorse  the  necessity  of  absolutism  or  trusteeism,  if 
they  are  to  have  political  influence,  must  get  it  through 

1  Since  this  was  written,  Mr.   Baer,  spokesman  of  the  anthracite 
railroads,  is  reported  to  have  answered  an  inquirer:   "I  beg  of  you  not 
to  be  discouraged.     The  rights  and  interests  of  the  laboring  man  will  be 
protected  and  cared  for,  not  by  the  labor  agitators,  but  by  the  Christian 
men  to  whom  God  in  His  infinite  wisdom  has  given  the  control  of  the 
property  interests  of  the  country."     See  Independent,  Aug.  28,  1902, 
p.  2043. 

2  It  will  be  noted  that,  since  this  was  written,  President  Roosevelt 
has  clearly  distinguished  between  good  trusts  and  bad  trusts  in  much 
the  pastoral  spirit  of  Bossuet  and  Hadley. 


64  LABOR  AND  ADMINISTRATION 

those  classes  which  resist  these  absolutist  institutions.  If 
they  can  show  that  there  is  another  solution  to  the  prob- 
lem, if  they  can  show  that  there  is  a  safe  and  rational 
method  by  which  these  excluded  classes  can  share  in  the 
control  of  these  institutions  and  by  which  the  prosperity 
of  the  whole  will  be  at  the  same  time  promoted,  then  the 
other  classes  will  take  up  their  arguments  and  will  use 
them  as  the  social  justification  of  their  class  struggle. 

In  doing  this,  the  other  economists  will  also  have  an 
opportunity  to  emphasize  the  interests  of  the  permanent 
welfare  of  society  as  paramount  to  class  interest.  But 
the  best  work  of  both  sets  of  economists  as  preachers  of 
social  morality  will  be  done  when  they  preach  to  their 
own  class.  As  long  as  their  economic  arguments  are 
used  in  the  main  to  justify  one  class  against  the  others, 
the  others  will  resent  their  moral  exhortations  as  imper- 
tinent and  hypocritical. 

I  said  that  there  are  two  different  methods  by  which 
the  excluded  classes  can  attack  the  privileged  classes  in 
their  privileges.  One  is  by  breaking  down  the  monopo- 
lies and  exclusive  privileges  of  the  dominant  class  and 
forcing  admission  for  the  individual  members  of  their 
own  class.  The  other  is  by  forcing  admission  as  an  or- 
ganized class,  through  their  representatives,  into  part- 
nership with  the  monopolist  and  sharing  with  him  by 
means  of  a  mutual  veto  the  government  of  the  monopo- 
lized institution. 

2.  The  former  was  the  method  advocated  by  Adam 
Smith.  Smith  was  the  radical  economist  of  his  time. 
President  Hadley  says  of  Smith  that  "  by  showing  the 
efficiency  of  competition  as  a  regulator  of  prices  and  an 
increase  of  useful  production,  he  furnished  a  powerful 
defence  of  the  existing  social  order.7'  This  is  doubtless 


ECONOMISTS   AND   CLASS   PARTNERSHIP      65 

a  prophetic  use  of  the  term  "  existing."  If  Adam  Smith 
defended  the  existing  social  order,  it  was  existing  in 
posse  and  not  in  esse.  From  beginning  to  end  he  at- 
tacked the  ancient  existing  privileges  of  the  dominant 
classes  in  English  politics.  These  were  two  classes  of 
what  were  really  hereditary  aristocracies.  They  were 
the  corporations,  or  guilds,  of  merchants  and  manufac- 
turers in  the  towns,  and  the  landed  aristocracy  in  the 
counties.  The  privileges  and  monopolies  which  he  at- 
tacked were  found  in  the  laws  which  they  had  enacted 
for  their  own  protection.  These  were  the  protective 
tariffs,  bounties  on  exportation  of  corn,  the  statutes  of 
apprenticeship,  laws  of  settlement,  laws  against  combi- 
nations of  laborers  and  capitalists,  the  exclusive  privi- 
leges of  what  he  called  "  corporations,  trades,  crafts 
and  mysteries,"  and  the  majority  rule  of  these  corpora- 
tions by  which  they  tied  the  hands  of  the  minority.  In 
making  this  attack,  Adam  Smith  furnished  the  argu- 
ments by  which  the  capitalist  class  was  able  to  enlist 
the  laborers  and  all  the  excluded  classes  in  a  success- 
ful attack  on  the  existing  dominant  classes.  The  result 
was  that  the  monopolies  of  the  dominant  classes  were 
broken  down  by  the  attack  of  the  excluded  classes. 
Competition  was  henceforth  forced  upon  the  members 
of  the  dominant  class,  and,  not  only  this,  but  the  capi- 
talist class  secured  admission  to  these  privileged  ranks 
on  equal  terms  of  competition.  Thus  the  competition 
between  individuals  of  one  class  for  the  benefit  of  society 
as  a  whole  was  itself  the  great  aim  and  chief  result  of 
a  class  struggle.  Had  the  subordinate  class  not  been  suc- 
cessful, then  industry  would  have  petrified  in  an  heredi- 
tary caste  system,  as  in  India,  and  there  would  have 
been  no  prosperity  of  the  whole. 


66  LABOR  AND   ADMINISTRATION 

3.  The  other  method  of  democratizing  an  institution  is 
to  get  admission  as  an  organized  class.  This  was  done 
by  the  aristocracy  and  middle  classes  in  the  revolution 
of  1688  in  the  case  of  the  national  government,  wherein 
Parliament  was  given  a  veto  on  the  King,  and  all  laws 
had  to  be  henceforth  approved  equally  by  the  King,  the 
Lords  and  the  Commons.  This  method  is  necessary 
where  the  monopoly  cannot  be  abolished.  Adam  Smith 
was  able  to  show  how  exclusive  privileges  could  be 
done  away  with  altogether.  It  was  not  so  with  the  in- 
stitution of  government,  which  had  to  remain  a  mo- 
nopoly and  could  not  go  back  to  feudalism. 

We  are  in  a  similar  position  to-day  respecting  trusts 
and  political  parties.  If  these  two  kinds  of  monopolies 
can  be  abolished,  then  there  ought  to  be  economists  who 
will  show  how  to  do  it.  The  monopoly  in  politics,  or 
bossism,  may  possibly  be  abolished  by  direct  legislation 
or  by  proportional  representation.  If  it  cannot  be 
abolished,  then  there  will  come  laws  like  the  Primary 
Reform  laws  recently  enacted  in  several  states,  where 
the  rank  and  file  are  legally  admitted  to  a  vote  in  the 
election  of  the  boss.  In  the  case  of  trusts,  if  they  cannot 
be  abolished,  then  the  other  remedy  is  to  give  the  people 
a  voice  in  electing  the  trustees.  How  this  can  be  done, 
which  method  is  suitable  to  different  cases,  are  matters 
for  economists  to  discover.  Only  those  will  attempt 
the  discovery  who  see  the  need;  that  is,  those  who 
on  the  whole  feel  that  the  welfare  of  society  will  be  best 
promoted  by  uniting  the  excluded  classes  for  an  attack 
on  the  privileged  classes. 

That  this  points  to  a  radical  difference  between  Presi- 
dent Hadley's  position  and  mine,  and  that  our  contention 
is  not  merely  one  of  words,  nor  is  it  an  obverse  and  re- 


ECONOMISTS   AND    CLASS   PARTNERSHIP      67 

verse  statement  of  the  same  position,  is  shown  by  the 
practical  conclusions  drawn.  While  he  holds  that  there 
is  but  one  form  of  government,  namely,  government  by 
the  boss  of  an  institution  controlled  by  such  public 
opinion  as  the  leading  thinkers  and  preachers  can  bring 
to  bear,  I  hold  that  there  is  another  possible  form, 
namely,  government  by  the  different  interests  and 
classes  which  hitherto  were  subject  to  the  boss.  This 
also  is  controlled  more  or  less  by  public  opinion,  but  it 
is  essentially  different  from  the  former.  If  we  must 
wait  for  public  opinion,  led  by  economists  and  social 
moralists,  to  control  the  bosses  in  industry  and  politics, 
then  we  are  only  waiting  for  a  harsh  despotism  to  be- 
come a  paternal  despotism.  But  if  we  recognize  the 
social  classes  which  are  struggling  for  a  share  in  these 
despotisms,  then  we  can  look  forward,  not  to  a  persist- 
ent absolutism,  but  to  a  democratic  government  of  in- 
dustry and  politics,  where  the  subordinate  and  excluded 
classes  gain  a  legal  control  over  their  rulers  and  are  not 
forced  to  content  themselves  with  the  vagueness  of 
merely  moral  control  by  public  opinion.  In  other 
words,  failure  to  recognize  social  classes  means  paternal- 
ism based  on  the  survival  of  the  strongest;  while  rec- 
ognition of  social  classes  means  self-government  based 
on  legalized  justice  between  classes. 

I  believe  that  the  economist  in  working  through 
social  classes  is  working  through  the  greatest  of  social 
forces.  Class  struggles  are  a  condition  that  make  for 
progress,  and  their  absence  indicates  stagnation.  At 
the  same  time,  the  economist  does  not  represent  a  social 
class  in  the  way  that  the  lawyer,  the  labor  leader  or  the 
politician  does.  He  does  not  depend  upon  the  class  for 
election.  He  chooses  his  own  ground.  He  is  a  pioneer. 


68  LABOR  AND   ADMINISTRATION 

He  begins  from  the  social  standpoint,  and  works  to  the 
class  standpoint.  He  sees  that  social  classes  are  not 
permanent  divisions  in  society.  They  are  historical 
categories.  They  are  temporary  and  shifting.  They 
give  way  to  new  divisions.  For  this  reason  the  econ- 
omist may  even  create  a  class.  At  least  he  often  unites 
different  classes.  This  Adam  Smith  did.  The  later 
economists  who  followed  Smith,  like  James  Mill,  Senior, 
Fawcett,  were  more  closely  allied  to  the  capitalist  class, 
because  they  attacked  both  the  aristocracy  and  the 
laborers;  and  they  were  the  economists  who  have  had 
the  strongest  influence  on  politics,  for  they  directly  aided 
in  abolishing  the  protective  restrictions  and  poor  laws 
of  the  aristocracy. 

But  Smith  had  not  distinguished  clearly  between 
capitalist  and  laborer.  At  his  time  their  interests 
had  much  in  common,  and  he  was  able  to  show  this  and 
to  bring  them  together.  But  he  did  not  represent  the 
nation  as  a  whole.  He  did  not  represent  the  aristocratic 
classes.  He  attacked  them.  It  may  be  said  that  he 
believed  they  stood  in  the  way  of  the  nation  as  a  whole, 
and  must  therefore  be  sacrificed  for  the  good  of  all.  If 
that  be  so,  I  cannot  see  how  he  can  be  said  to  have  rep- 
resented them.  They  believed  that  they  also  stood 
for  the  good  of  the  nation,  and  they  resented  any  claim 
on  his  part  to  speak  for  them.  To  the  aristocrats 
actually  in  the  struggle  it  appeared  that  they  were  to  be 
sacrificed  for  the  good  of  upstart  capitalists  and  the  de- 
struction of  England.  It  remained  for  the  succeeding 
century  to  answer  positively  as  to  which  class  was  right. 
Adam  Smith  doubtless  was  honest,  but  so  were  the  de- 
fenders of  the  existing  order.  In  fact,  they  had  prestige 
and  history  back  of  them,  while  he  had  only  his  argu- 


ECONOMISTS   AND   CLASS   PARTNERSHIP      69 

ments.  He  was  not  bitter  nor  partisan ;  he  was  only 
philosophical.  But  for  this  very  reason  he  was  com- 
pelled to  see  that  the  economic  institutions  of  his  time 
were  framed  in  the  interest  of  the  dominant  classes,  and 
that  these  classes  were  but  a  part  of,  and  actually  stood 
in  the  way  of,  the  nation  as  a  whole. 

As  economists  I  believe  we  would  stand  on  safer  ground 
if,  when  our  conclusions  lead  us  to  champion  the  cause  of 
a  class,  or  of  a  group  of  classes,  or  to  expose  another  class, 
we  should  come  squarely  out  and  admit  that  it  is  so ;  not 
because  the  class  interest  is  foremost  in  our  minds,  but 
because  the  class  is  the  temporary  means  of  bringing 
about  the  permanent  welfare  of  all.  We  doubtless 
should  always  be  guided  by  an  honest  striving  for  the 
welfare  of  all.  We  should  never  be  blindly  bigoted  nor 
partisan  nor  committed  irrevocably  to  a  class  position, 
with  its  bad  as  well  as  its  good.  We  should  be  broad- 
minded  like  Adam  Smith.  But  we  should  admit  that 
we  differ  among  ourselves,  and  that  our  fundamental 
differences  coincide  in  general  with  class  antagonism 
in  society.  We  are  a  part  of  the  social  situation. 
History  alone  will  decide  between  us.  Our  present 
vision  is  limited.  For  this  reason  we  ought  to  acknowl- 
edge that  no  one  man  is  great  enough  and  good  enough 
to  stand  solely  and  at  all  times  in  practical  politics  for 
the  nation  as  a  whole,  but  that  all  men  in  a  free  republic 
are  also  moved  by  the  same  spirit  of  patriotism.  We 
ought  to  acknowledge  that  the  nation  as  a  whole  is  rep- 
resented by  the  accredited  representatives  of  all  classes ; 
that  no  man  can  honestly  represent  a  class  in  which  he 
does  not  believe.  It  is  out  of  the  combined  result  of 
public-spirited  men  contending  for  their  own  convictions 
and  authorized  to  speak  for  others  whose  convictions 


70  LABOR  AND  ADMINISTRATION 

are  the  same,  and  who  are  capable  of  making  concessions 
in  the  true  interest  of  all,  that  all  of  society  is  truly 
represented.  Not  the  individual  economist,  but  the 
associated  economists,  represent  the  permanent  interests 
of  the  nation  as  a  whole. 


CHAPTER  VI 

CLASS   CONFLICT 

Is  it  Growing  in  America,  and  is  it  Inevitable  ? 1 

THE  present-day  significance  of  the  term  "  class  con- 
flict "  is  found  in  the  apparent  antagonism  of  employing 
and  wage-earning  classes.  There  are  other  interests 
that  might  be  described  as  economic  classes,  but  their 
opposition  does  not  lead  to  outbreak.  Their  differences 
are  compromised  under  forms  of  constitutional  govern- 
ment. But  a  strike  is  incipient  rebellion. .  It  might  go 
to  the  limit  of  a  general  stoppage  of  industry,  as  it  has 
done  in  Belgium  and  Australia.  Whether  limited  or 
general,  it  is  the  revolt  of  a  practically  unpropertied  class 
against  property  rights.  It  is  a  kind  of  class  conflict 
not  yet  obviated  by  our  forms  of  government,  like  the 
contests  of  other  classes  or  interests. 

As  nearly  as  I  can  make  out  from  the  census  of  the 
United  States,  of  the  24,000,000  men  and  boys  engaged 
in  industry,  6,000,000  are  farmers  and  tenants,  3,750,000 
are  farm  laborers,  11,000,000  are  other  laborers,  clerks, 
and  servants,  1,500,000  are  professional  and  agent  classes, 
and  2,000,000  are  other  employers.  There  is  no  appre- 
ciable class  conflict  between  farmers,  tenants  and  farm 
laborers.  Over  one-half  of  the  laborers  are  sons  of  the 

1  Discussion  before  the  American  Sociological  Society,  Dec.,  1906, 
and  published  in  the  American  Journal  of  Sociology,  May,  1908,  pp. 
169-196.  The  syndicalist,  or  I.  W.  W.  movement,  was  not  in  evidence 
at  that  time,  but  it  seems  to  justify  some  of  the  predictions. 


72  LABOR  AND  ADMINISTRATION 

farmers,  destined  to  pass  up  into  their  fathers'  position 
or  out  into  other  classes.  The  tenants  are  small  con- 
tractors, interested  more  in  prices  and  profits  than  they 
are  in  wages.  The  professional  and  agent  classes  are 
disinterested,  or  else  interested  in  the  classes  to  whom 
they  cater.  The  field  for  a  class  conflict  is  the  1 1,000,000 
other  laborers  and  servants  and  the  2,000,000  employers. 

But  not  all  of  these  are  in  a  position  to  provoke  class 
feeling.  In  the  thousands  of  small  towns  and  villages 
the  employer  or  the  merchant  and  his  help  do  the  same 
kind  of  work  side  by  side,  and  they  have  close  personal 
relations,  often  that  of  father  and  son,  like  the  farmers. 
The  servants  are  individually  attached  to  individuals 
of  other  classes.  Many  thousands  of  apparent  laborers, 
like  teamsters  and  pedlers,  are  also  small  capitalists. 
At  the  outside  guess,  not  more  than  6,000,000  wage- 
earners,  and  1,500,000  employers  and  investors,  are  in  the 
field  where  classes  are  forming.  Two-thirds  of  the  voting 
population  are  spectators.  We  call  them  the  public. 
They  may  be  forced  to  take  sides,  but  they  want  fair  play. 
The  outcome  depends  on  the  way  they  are  brought  in. 

While  therefore  only  one-third  are  available  for  class 
conflict,  yet  they  operate  fundamental  industries  of  our 
civilization,  like  railways  and  coal  mines,  or  they  com- 
mand strategic  points,  like  cities,  the  centres  of  popula- 
tion. Their  importance  is  greater  than  their  numbers. 

Now,  it  must  be  noted  that  within  this  third  of  the 
population  enormous  industrial  changes  are  going  on. 
These  tend  to  intensify  the  class  conflict,  but  for  the  time 
being  conceal  it.  The  principal  changes  are  the  growth 
of  corporations  on  the  employers'  side  and  the  division 
of  labor  on  the  wage-workers'  side.  That  corporations 
break  down  the  personal  ties  that  formerly  held  to- 


CLASS   CONFLICT  73 

gether  the  employer  and  his  men  has  long  been  recognized, 
but  this  incidental  effect  is  insignificant  compared  with 
the  direct  effect  of  the  consolidated  corporations  and 
syndicates  of  the  past  ten  years.  By  combining  several 
corporations  into  one,  by  operating  several  establish- 
ments of  the  same  kind  in  different  parts  of  the 
country,  by  placing  them  all  on  a  uniform  system  of 
accounting  which  shows  at  a  glance  every  month  the 
minutest  detail  of  every  item  of  cost,  the  modern  trust 
is  going  further  to  alienate  classes  than  did  the  simple 
corporation  when  it  displaced  the  individual  employer. 
The  primitive  competition  of  employer  against  employer 
is  a  children's  game  compared  with  the  modern  competi- 
tion of  manager  against  manager  checked  up  every  month 
by  the  cold  statistics  of  cost.  Under  this  system  man- 
agers go  down  like  tenpins,  or  up  like  Schwab.  They 
"  hire  and  fire  "  their  employees,  promote  and  derate 
their  subordinates,  with  the  precision  of  rapid-fire 
guns.  Under  their  exact  system  of  costs  they  measure 
a  man  as  they  do  coal,  iron  and  kilowatts,  and  labor 
becomes  literally,  what  it  has  been  by  analogy,  a  com- 
modity. If  one  be  a  scientist  or  an  engineer  one  can  but 
admire  the  marvellous  results.  The  astounding  reduc- 
tions of  cost,  the  unheard-of  efficiency  of  labor,  the  pre- 
cise methods  of  scientific  experiment  and  tests,  reveal  a 
new  field  of  conquest  of  the  human  mind.  But  if  one 
talks  with  the  workmen  at  their  homes,  one  hears  the 
grumblings  of  class  struggle. 

The  system  is  perfected  by  the  division  of  labor.  For- 
merly a  workman's  efficiency  consisted  of  two  things, 
skill  and  speed.  Division  of  labor  has  split  up  his  skill 
into  its  constituent  operations,  and  the  progress  of  cost- 
keeping  is  carrying  the  analysis  further  than  ever  before. 


74  LABOR  AND  ADMINISTRATION 

Instead  of  the  skill  of  one  man,  we  have  the  grading  of 
operations  among  a  gang  of  men.  Skill  had  to  be 
measured  by  quality,  by  intelligence,  by  ingenuity, 
versatility  and  interest  in  his  work.  These  human 
qualities  are  elusive  and  not  yet  measured  even  by 
modern  psychology.  But  speed  can  be  measured  by 
quantity  and  a  clock.  Workmen  now  can  be  compared 
with  each  other  and  metered  up  like  dynamos.  The  rise 
and  fall  of  their  energy  each  hour  or  day  can  be  charted 
and  filed  away  in  a  card  catalogue  for  reference. 

Immediately  there  follows  a  new  science  and  art  of 
industrial  psychology.  The  efficiency  of  a  steam  engine 
is  kept  always  at  its  maximum  by  feeding  the  coal  with 
an  automatic  stoker.  So  the  output  of  labor  is  kept 
at  the  top  by  adjusting  the  pay  exactly  to  the  motive 
and  capacity.  This  is  done  by  premiums  and  bonuses 
on  output,  instead  of  the  cruder  and  more  wasteful 
methods  of  paying  the  same  price  for  every  piece,  and 
these  premiums  are  nicely  figured  to  the  point  where  the 
workman  will  put  out  the  maximum  exertion  for  the 
minimum  bonus.  The  psychology  of  the  workman  is 
analyzed  and  experimented  upon  as  accurately  as  the 
chemistry  of  the  different  kinds  of  coal.  A  time-keep- 
ing department  is  created  for  this  purpose,  with  experts, 
card  records  and  a  testing  laboratory,  and  a  new  engi- 
neering profession  springs  up  with  industrial  psychology 
as  its  underlying  science.  Wonderful  and  interesting 
are  these  advances  in  harnessing  the  forces  of  human 
nature  to  the  production  of  wealth.  The  pioneers  in 
this  field,  calling  themselves  "  production  engineers," 
may  well  be  compared  with  the  great  inventors  of  the 
turbine  and  the  dynamo  in  what  they  "are  doing  to  reduce 
cost  and  multiply  efficiency. 


CLASS   CONFLICT  75 

But  in  doing  so  they  are  doing  exactly  the  thing  that  U 
forces  labor  to  become  c/ass-conscious.     While  a  man 
retains  individuality,  he  is  more  or  less  proof  against  class 
feeling.     He   is   ^//-conscious.     His   individuality  pro 
tects  him  somewhat  against  the  substitution  of  some  oni 
else  to  do  his  job.     But  when  his  individuality  is  scien 
tifically  measured  off  in  aliquot  parts  and  each  part  i: 
threatened  with  substitution  by  identical  parts  of  othe 
men,  then  his  sense  of  superiority  is  gone.     He  and  his 
fellow-workmen  compete  with  each  other,  not  as  whole 
men,  but  as  units  of  output.     The  less-gifted  man  be- 
comes a  menace  to  the  more  gifted  as  much  as  the  one 
to  the  other.     Both  are  then  ripe  to  recognize  their 
solidarity,  and  to  agree  not  to  compete.     And  this  is 
the  essential  thing  in  class  conflict. 

But  it  is  significant  to  note  that  in  the  industries 
where  the  conditions  described  have  gone  farthest,  there 
the  class  conflict  is  least  apparent.  Of  the  6,000,000 
wage-earners  mentioned,  possibly  2,000,000  are  organ- 
ized in  unions.  But  the  unions  have  practically  dis- 
appeared from  the  trusts,  and  are  disappearing  from 
the  large  corporations  as  they  grow  large  enough  to 
specialize  minutely  their  labor.  The  organized  workmen 
are  found  in  the  small  establishments  like  the  building 
trades,  or  in  the  fringe  of  independents  on  the  skirts  of  the 
trusts ;  on  the  railways,  where  skill  and  responsibility 
are  not  yet  displaced  by  division  of  labor ;  in  the  mines, 
where  strike-breakers  cannot  be  shipped  in;  on  the 
docks  and  other  places,  where  they  hold  a  strategic 
position.  While  the  number  of  organized  workmen 
shows  an  increase  in  these  directions,  it  shows  a  decrease 
in  the  others.  It  is  in  these  organized  industries  that 
the  class  conflict  appears,  and  there  the  lines  are  drawing 


76  LABOR  AND  ADMINISTRATION 

tighter.  It  is  there  that  employers'  associations  are 
forcing  employers  into  line  and  are  struggling  to  do  for 
the  medium  employer  what  the  trust  does  without  an 
association.  But  most  of  the  unions  in  question  are 
not  unions  of  a  class.  They  are  unions  of  a  trade  or  a 
strategic  occupation.  On  the  railroads  they  cater  only 
to  a  third  or  a  fourth  of  all  railroad  employees.  They 
represent  for  the  most  part  the  first  stage  in  the  class 
struggle  —  that  of  the  skilled  workmen  protecting  them- 
selves through  apprenticeship  against  the  inroads  of 
unskilled.  Other  unions  like  the  shoe-makers  and  mine- 
workers  represent  the  second  stage,  that  of  an  industrial 
class  including  all  occupations.  The  first  stage  has  been 
driven  out  of  the  trust ;  the  second  stage  has  not  arrived. 
And  it  does  not  seem  likely,  where  a  corporation  has 
reached  the  position  of  a  trust,  that  unionism  will  get 
a  footing,  no  matter  how  class-conscious  the  workmen 
have  become.  The  very  division  of  labor,  which  tends 
towards  class  solidarity,  offers  means  to  circumvent  it. 
It  need  not  be  repeated  that  a  potent  reason  for  the 
persistent  class  conflict  of  the  past  twenty  years  is  the 
closing  up  of  the  great  outlet  for  agitators,  the  frontier. 
But  the  division  of  labor  offers  a  substitute  outlet  in 
the  form  of  promotion.  Promotion,  where  speed  is  the 
standard,  has  rich  possibilities  compared  with  old  forms 
of  promotion  based  on  skill.  Under  the  older  forms 
workmen  came  into  the  various  skilled  trades  by  several 
side  entrances  of  apprenticeship,  and  each  trade  had  its 
narrow  limits  upward.  Under  the  newer  forms  the 
workmen  nearly  all  come  in  at  the  bottom,  and  the  oc- 
cupations are  graded  by  easy  steps  all  the  way  to  the 
top.  The  ambitious  workman  advances  rapidly,  and 
with  every  step  his  rate  of  pay  increases  and  his  work 


CLASS   CONFLICT  77 

gets  easier.  But  he  remains  all  the  time  a  part  of  the 
gang,  and  his  earnings  depend  on  the  exertions  of  those 
below  him.  As  he  approaches  the  head  of  his  gang,  he 
has  the  double  job  of  a  man  who  gets  wages  as  a  work- 
man and  profits  on  his  fellow- workmen.  He  begins  to 
be  paid  both  for  his  work  and  for  making  others  work. 
Quite  generally  it  will  be  found  that  the  head  men  of  a 
gang  are  paid  disproportionately  high  for  the  skill  they 
are  supposed  to  have.  The  difference  is  a,  payment, 
not  for  mechanical  skill,  but  for  loyalty.  They  keep 
their  fellows  up  to  the  highest  pitch  of  exertion,  and  they 
stand  by  the  company  in  times  of  discontent.  Their 
promotion  is  not  a  mere  outlet  for  agitation  —  it  is  a 
lid  on  the  agitation  of  others. 

But  there  is  still  further  room  for  promotion,  when 
the  workman  becomes  a  foreman,  superintendent  or 
manager.  Here  he  ceases  manual  work  and  keeps 
others  at  work.  He  gets  a  salary,  often  a  bonus  or  a 
share  in  the  profits,  depending  for  its  amount  upon  the 
work  of  his  former  fellows.  Thus  it  is  that  a  wise  sys- 
tem of  promotions  becomes  another  branch  of  industrial 
psychology.  If  scientifically  managed,  as  is  done  by 
the  great  corporations,  it  produces  a  steady  evaporation 
of  class  feeling.  I  have  often  come  upon  fiery  socialists 
and  ardent  trade  unionists  thus  transformed  and  vapor- 
ized by  this  elevating  process. 

In  some  industries,  like  railroads  and  others,  the 
straight  line  of  promotion  is  as  yet  obstructed  by  cross 
trade  lines,  and  it  might  seem  that  the  situation  is 
different  from  that  herein  described.  In  such  cases  a 
skilled  trade  or  two,  like  the  locomotive  engineers,  may 
be  found  which  is  organized  and  recognized  by  the 
employer  on  apparent  class  lines.  But  the  situation 


78  LABOR  AND   ADMINISTRATION 

is  not  essentially  different.  The  true  class  conflict 
is  really  for  the  time  prevented  by  elevating  a  strategic 
fraction  of  the  class  instead  of  promoting  individuals. 
It  is  this  kind  of  fractional  organization,  as  already 
mentioned,  that  has  been  gradually  eliminated  from 
other  industries  with  the  growth  of  corporations  and  the 
division  of  labor. 

Another  line  of  promotion  quite  potent  in  drawing  off 
leaders  is  politics.  Class  conflict  in  America  is  less 
persistent  than  in  England  and  Europe,  because  the 
leaders  find  an  outlet  in  salaried  political  jobs  when  the 
burden  of  agitation  grows  tiresome.  If  civil-service 
reform  continues  to  make  progress,  this  outlet,  like 
free  land,  will  gradually  close,  and  the  class  struggle 
will  become  more  intense. . 

While  promotion  at  the  top  weakens  cj^ss^sojidarity, 
immigration  and  women's  labor  at  the  bottom  unHer- 
mine  it.  Race  divisions  and  their  accompaniment, 
religious  divisions,  are  injected,  and  to  the  inducement 
offered  by  way  of  promotion  to  exploit  their  fellows  is 
added  race  antipathy  toward  those  exploited.  The 
peculiarity  of  class  conflict  is  its  occurrence  within  the 
dominant  race.  The  bitterest  class  struggle  now  going 
on  in  America  is  that  of  the  Western  Federation  of 
Miners,  the  most  purely  American  of  trade  unions.  In 
places  where  that  union  has  been  defeated  the  employers 
are  bringing  in  the  Italians  and  the  Slavs,  and  the 
struggle  is  as  much  a  defence  against  immigrants  as  an 
aggression  on  capital.  In  other  industries  like  iron  and 
steel,  where  the  non-English  foreigner  is  two-thirds  of 
the  force,  those  English-speaking  workmen  who  have 
not  been  driven  out  have  been  promoted  up  to  the  higher 
positions,  and  both  their  race  aversion  and  their  superior 


CLASS   CONFLICT  79 

jobs  hold  them  aloof.  In  the  iron  mines  of  Minnesota, 
unlike  the  gold,  silver  and  copper  mines  of  the  Rockies, 
the  Western  Federation  meets  greater  difficulty  in  or- 
ganizing the  Americans  than  in  organizing  the  immi- 
grants. In  still  other  industries,  like  the  coal  mines, 
where  the  immigrants  are  more  Americanized  and  the 
Americans  have  not  escaped  their  competition  by  pro- 
motion, race  and  religion  have  been  fused  and  an  eco- 
nomic class  has  emerged.  Thus  immigration'-  has  a 
threefold  effect.  At  first  it  intensifies  the  conflict  of 
classes  in  the  dominant  race.  Next  it  shatters  class 
solidarity.  Finally,  when  the  immigrants  and  their 
children  are  Americanized  and  promoted,  they  renew 
the  class  alignment.  While  immigration  continues  in 
great  volume,  class  lines  will  be  forming  and  re-forming, 
weak  and  unstable.  To  prohibit  or  greatly  restrict 
immigration  would  bring  forth  class  conflict  within  a 
generation. 

The  foregoing  are  some  of  the  complex  industrial  con- 
ditions which  must  be  taken  into  account  in  estimat- 
ing the  prospects  of  class  conflict  in  America.  There 
remains  to  be  considered  the  question  of  politics.  Class 
conflict  inevitably  compels  the  government  to  take  a 
hand.  The  executive  calls  out  the  police,  the  militia 
and  the  army.  The  judiciary  enjoins  the  strikers  and 
orders  the  arrest  and  commitment  of  the  leaders.  The 
struggle  terminates  in  favor  of  the  side  that  controls 
the  policy  of  these  branches  of  government.  Whether 
we  like  it  or  not,  each  side  reaches  out  to  get  control. 
The  contest  is  shifted  to  the  field  of  practical  politics. 
Here  the  great  third  party,  the  two-thirds  of  the  voters, 
is  sooner  or  later  brought  in.  As  long  as  organized 
labor  can  win  by  strikes  or  negotiation,  it  rejects  the 


8o  LABOR  AND  ADMINISTRATION 

political  weapon.  When  strikes  begin  to  fail  and  nego- 
tiation is  fruitless,  it  turns  to  the  elections.  But  strikes 
are  successful  mainly  in  the  early  stages  when  employers 
have  not  learned  the  tactics  of  organization.  After 
they  have  perfected  their  associations,  after  these  asso- 
ciations have  federated,  and  especially  after  employers 
have  consolidated  in  great  corporations  and  trusts,  their 
capacity  for  united  action  exceeds  that  of  organized 
labor.  Their  tactics  are  directed,  not  so  much  toward 
winning  in  strikes  as  toward  preventing  strikes  and 
disintegrating  unions.  By  wise  promotions,  by  watchful 
detectives,  by  prompt  discharge  of  agitators,  by  an  all- 
round  increase  of  wages  when  agitation  is  active  on  the 
outside,  by  a  reduction  only  when  the  menace  has  passed 
or  when  work  is  slack,  by  shutting  down  a  plant  where 
unionism  is  taking  root  and  throwing  orders  to  other 
plants,  by  establishing  the  so-called  "  open  shop/' 
-  these  and  other  masterful  stratagems  set  up  a  prob- 
lem quite  different  from  what  unionism  has  heretofore 
met.  It  does  not  seem  possible  under  such  conditions 
that  organization  will  get  a  footing  in  the  great  consoli- 
dated industries.  The  only  possibility  appears  to  be 
that  in  the  event  of  some  widespread  social  unrest  or 
depression  of  trade,  the  thousands  of  these  employees 
throughout  the  country  will  suddenly  quit  work,  on  the 
impulse  and  without  prior  organization  or  concerted 
action.  Such  an  unlikely  revolution  would  quickly  end 
in  submission. 

Neither  does  it  seem  possible  that  these  thousands  of 
employees  will  turn  to  a  socialist  party.  This  is  not 
because  they  are  not  ripening  for  socialism.  Nothing 
is  more  surprising  than  the  numbers  of  well-paid  men 
employed  by  the  trusts  and  great  corporations  who  say 


CLASS   CONFLICT  Si 

in  confidence  that  they  are  socialists.  It  is  not  their 
wages  of  which  they  complain,  but  the  long  hours,  the 
intense  speed  and  exertion,  the  two  shifts  of  12  hours 
six  or  seven  days  in  the  week,  the  Sunday  labor  some- 
times continuing  twenty-four  hours  in  succession  when 
the  day  and  night  shifts  change.  Their  physical  exhaus- 
tion and  continuous  work  nullify  the  enjoyment  of  their 
good  wages.  But  the  very  reasons  that  keep  them 
from  unionizing  keep  them  from  voting  or  discussing. 
They  distrust  politics,  they  think  the  socialist  party  has 
no  chance,  they  are  not  willing  to  lose  their  jobs,  they 
are  in  the  minority,  and  the  great  mass  of  their  fellow- 
workmen  have  but  little  time  and  strength  to  think  and 
talk  of  anything  except  the  gossip  of  their  daily  work. 
I  do  not  look  for  a  socialist  party  to  recruit  these  voters 
- 1  look  for  a  demagogue. 

If  we  may  judge  from  what  has  happened  in  two  other 
English-speaking  nations,  Australia  and  Great  Britain, 
a  labor  party  may  be  expected.  In  Australia  this  party 
followed  upon  a  series  of  widespread  and  disastrous 
strikes.  In  Great  Britain  it  followed  a  supreme  court 
decision  that  jeopardized  the  funds  of  trade  unions. 
But  a  party  formed  on  class  lines  cannot  enlist  more 
recruits  than  there  are  in  the  class.  In  this  case,  at  the 
outside,  it  is  one-third  of  the  voters.  Whether  a  social- 
ist or  labor  party  shall  ever  be  able  to  reach  even  this 
number,  depends  on  the  attitude  taken  by  the  other 
two-thirds.  If  they  demand  fair  play,  and  if  they  are 
able  to  enforce  their  demand,  a  class  party  will  not 
attract  even  its  own  class.  More  inspiring  to  the 
ordinary  man  than  the  struggle  for  class  advantage  is 
the  instinct  of  justice.  But  justice  is  not  merely  fair 
play  between  individuals,  as  our  legal  philosophy 


82  LABOR  AND  ADMINISTRATION 

would  have  it,  —  it  is  fair  play  between  social  classes. 
The  great  constitutional  safeguards  which  we  have 
asserted  since  the  time  of  Magna  Charta  have  been 
adopted  in  order  to  place  a  subordinate  class  on  an 
equilibrium  with  a  dominant  class.  It  is  in  this  way  that 
trial  by  jury  has  had  to  be  reasserted  whenever  a  new 
social  class  has  emerged.  And  it  is  partly  by  restoring 
trial  by  jury  that  the  great  third  class,  the  public,  is 
now  beginning  to  assert  its  right  to  hold  the  balance 
between  two  struggling  classes.  This  beginning  may 
be  seen  in  the  new  constitution  framed  by  the  farmers  of 
Oklahoma. 

Class  conflict  may  be  growing,  but  it  is  not  inevitable 
if  this  third  class,  which  is  not  a  class,  is  able  to  deter- 
mine directly  the  issues.  There  are,  indeed,  serious 
obstacles  in  the  way.  The  principal  one  is  political. 
Between  the  public  and  the  expression  of  its  will  are  the 
political  party,  the  party  machine,  and  a  legislature, 
executive  and  judges  selected  by  these  intruders. 
Here  is  a  backstairs  for  manipulation,  corruption  and 
class  legislation.  But  the  public  at  large  is  too  big  and 
too  exposed  for  the  wire-pulling  of  classes.  And  it 
does  not  consent  that  one  class  shall  have  an  advantage 
over  another.  It  does  not  favor  either  radicals  or  reac- 
tionaries. When  the  public  shall  have  more  direct 
1  means  of  expressing  its  will,  through  direct  nominations, 
1  direct  election,  initiative  or  referendum,  then  we  may 
v  expect  class  conflict  to  subside.  The  class  war  in 
Colorado  broke  out  because  the  legislature  refused  to 
carry  out  the  will  of  the  people  as  expressed  in  a  con- 
stitutional amendment.  A  popular  verdict  may  not 
always  be  just,  but  it  insures  non-resistance.  It  is  not 
so  much  abstract  justice  that  satisfies  individuals  and 


CLASS   CONFLICT  83 

classes,  as  confidence  in  a  full  hearing,  a  fair  trial  and 
honest  execution  of  the  verdict.  If  these  are  guaranteed, 
the  issue  may  be  brought  up  again.  Class  antagonism 
will  not  disappear  as  long  as  there  is  wealth  to  distrib- 
ute, but  it  can  be  transferred  to  the  jury  of  the  peopl 
Then  we  may  expect  social  classes  to  state  their  case  in 
the  open  and  to  wait  on  the  gradual  process  of  educa- 
tion rather  than  plunge  into  battle. 

I  do  not  hold  that  this  third  class  is  disinterested  and 
that  its  will  is  always  right.  Economically  it  stands 
apart  as  a  class  of  consumers.  It  is  interested  directly 
in  low  prices  for  the  products  it  purchases.  The  exist- 
ing widespread  movement  for  the  regulation  of  corpo- 
rations is  a  movement  for  reducing  monopoly  prices. 
If  it  is  carried  through,  the  consumers  will  be  conciliated 
and  satisfied.  But  they  will  be  satisfied  on  the  basis 
of  existing  wages,  hours  and  conditions  of  labor.  A 
movement  of  wage-earners  for  larger  wages  and  shorter 
hours  will  then  meet  their  hostility  as  well  as  that  of  the 
immediate  employers.  If  the  regulation  of  corporations 
on  behalf  of  consumers  is  not  accompanied  with  regu- 
lation on  behalf  of  employees,  the  class  conflict  may 
become  more  intense  and  difficult.  Time  is  the  essence 
of  prevention.  It  is  not  merely  blind  economic  evolution 
that  provokes  economic  classes  into  existence.  It  is 
class  legislation  in  the  past.  The  protective  tariff  has 
appealed  to  wage-earners  and  the  public  on  behalf  of 
manufacturers,  but  it  has  contained  no  provision,  like 
that  in  the  Australian  tariff,  by  which  the  profits  of  the 
tariff  should  be  shared  with  wage-earners.  It  has  been 
left  to  them  to  get  what  they  could  by  trade  unions. 
With  such  an  example  of  class  legislation  before  them  it 
is  not  surprising  that,  when  unions  are  crushed  by  the 


84  LABOR  AND  ADMINISTRATION 

great  tariff-protected  trusts,  then  the  wage-earners 
should  think  of  socialism.  But  it  does  not  follow  that 
the  tariff  should  be  abolished.  It  follows  that  when 
it  is  revised  it  should  provide  means  to  pass  the  protec- 
tion along  to  the  wage-earners  as  well  as  conciliate  the 
consumers. 

Other  lines  of  legislation  might  be  mentioned,  which 
would  tend  to  place  social  classes  on  an  equilibrium. 
Whether  they  do  so  or  not  depends  on  whether  they 
come  before  the  whole  people  soon  enough,  on  their 
merits  and  without  the  intermediary  of  political  machin- 
ery. If  this  occurs,  then  no  one  class  or  part  of  a  class 
will  be  big  enough  to  swing  all  the  voters.  Like  the 
waves  on  the  ocean  it  may  move  up  and  down,  but  it 
comes  back  to  the  level  of  the  massive  bulk  beneath. 


CHAPTER  VII 

THE   UNION   SHOP1 

THE  open-shop  controversy,  in  its  extreme  form,  is 
peculiar  to  America.  The  British  labor  delegates,  two 
years  ago,  were  surprised  to  see  the  bitterness  of  the 
American  unionist  toward  the  "  scab."  This  feeling 
has  its  roots  in  conditions  and  history  peculiar  to  this 
country.  For  three  generations  the  American  working- 
man  has  been  taught  that  the  nation  was  deeply  con- 
cerned in  maintaining  for  him  a  high  standard  of  living. 
Free  traders  objected  that  manufacturers  would  not 
pay  higher  wages,  even  if  protected.  Horace  Greeley, 
who,  as  much  as  any  other  man,  commended  the  "  Amer- 
ican System  "  to  wage-earners,  admitted  the  force  of 
the  objection,  but  he  held  that  socialism,  or,  as  he  called 
it,  "  association,"  would  share  the  benefits  of  the  tariff 
with  them.  But  this  must  come  through  the  workmen 
themselves.  Some  of  them  tried  it.  The  communistic 
experiments  failed.  They  tried  cooperation,  education, 
politics.  Neither  did  these  seem  to  reach  the  high  aims 
of  protection.  Meanwhile  they  were  discovering  the 
power  of  the  strike.  By  this  kind  of  association  those 
who  could  hold  together  found  themselves  actually 
sharing  the  benefits  of  protection  which  Greeley  mis- 
takenly predicted  for  his  fantastic  kind  of  association. 

1  Address  before  the  American  Economic  Association,  Dec.,  1904, 
and  published  in  the  Proceedings.  Since  that  time,  the  "preferen- 
tial union  shop,"  so  ingeniously  contrived  by  Louis  D.  Brandeis  for  the 
needle  trades  of  New  York,  has  given  practical  force  to  the  distinctions 
here  noted  between  "closed  shop,"  "open  shop"  and  "union  shop." 

85 


86  LABOR  AND  ADMINISTRATION 

But  the  gains  from  strikes  were  temporary.  The 
federal  laws  which  protected  manufacturers  against  the 
products  of  foreign  labor  permitted  them  to  import  the 
foreigners  themselves.  In  many  cases  strikes  were 
defeated  by  the  immigrants,  and  in  many  more  cases 
the  immigrants  went  into  the  shops  to  share  the  gains 
won  by  the  strikers,  or  gradually  to  displace  them  with 
their  lower  standards  of  living.  With  a  unanimity  never 
before  shown,  the  unions  entered  the  political  field  and 
got  the  Chinese  exclusion  acts  and  the  alien  contract 
labor  laws.  These  theoretically  rounded  out  the  tariff 
system,  and  they  somewhat  lessened  the  pressure  on  the 
skilled  trades.  But  the  amount  of  immigration  itself 
was  not  lessened.  Rather  have  the  laws  been  evaded, 
and  the  influx  has  swollen  greater  than  before,  while  the 
sources  have  shifted  to  still  lower  standards  of  life.  By 
a  minute  division  of  labor  and  nearly  automatic  ma- 
chinery unknown  in  any  other  country,  the  skilled 
trades  were  split  into  simple  operations  and  places 
created  for  the  unskilled  immigrants.  The  strike  thus 
seemed  likely  to  lose  permanent  results.  The  unions 
were  unable  in  politics  further  to  check  immigration. 
Indorsing  the  tariff  on  products  as  a  necessary  first  step, 
they  were  left  to  enact  their  own  tariff  on  labor.  The 
sympathies  of  the  American  public  were  with  them,  but 
these  sympathies,  lacking  the  historical  sense,  have 
recently  somewhat  declined,  when  it  is  found  that  the 
union  theory  is  that  of  protection  and  not  that  of  free 
trade.  The  British  unions  are  protected  by  long  peri- 
ods of  apprenticeship.  The  non-unionist  is  only  an- 
other Englishman  who  can  be  talked  to,  and  whose  class 
feelings  are  strong  and  identical  with  those  of  the 
unionist.  The  employers  are  not  protected  by  a  tariff, 


THE   UNION   SHOP  87 

neither  have  they  imported  foreign  workmen.  Division 
of  labor  is  not  minute,  and  the  skilled  workman  is  not 
directly  menaced  by  the  unskilled.  But  the  American 
unions  have  very  little  industrial  or  racial  protection. 
Apprenticeship  is  gone,  except  as  enforced  by  them 
against  the  protests  of  employers.  In  order  to  enforce 
this  and  other  measures  needed  to  keep  wages  above 
the  market  rate,  the  unions  found  themselves  compelled 
to  enforce  the  rule  that  no  one  should  enter  the  shop  ex- 
cept through  the  union.  Without  this  rule  their  efforts 
were  nullified. 

It  naturally  is  objected  that,  in  comparing  the  closed 
shop  with  the  tariff,  a  corollary  cannot  be  drawn  from 
the  laws  enacted  by  government  to  the  rules  imposed  by 
a  union.  The  presumption  is  in  favor  of  free  trade, 
and  only  the  sovereign  power  has  the  right  to  interfere, 
and  that  in  the  general  interest.  Where  private  associ- 
ations restrict  competition,  the  act  becomes  conspiracy. 
But  here  the  unions  found  that  public  sympathy  and 
judicial  decision  have  made  an  exception  in  their  favor. 
While  a  combination  to  put  up  prices  is  illegal,  a  com- 
bination to  put  up  wages  was  gradually  relieved  of 
legal  penalty.  It  was  felt  that  the  laborer  was  the 
weaker  party  to  the  bargain;  that  the  same  public 
policy  which  would  keep  down  prices  to  the  level  of 
domestic  competition  would  encourage  the  laborer  to 
keep  wages  above  the  level  of  immigrant  competition. 
Capital  could  take  care  of  itself,  and  the  capitalist  who 
failed  in  competition  would  only  drop  into  the  ranks 
of  wage-earners,  but  the  laborer  who  failed  had  no 
place  lower  to  drop.  Consequently,  while,  on  the  one 
hand,  the  doctrine  of  protection  to  manufactures  was 
gaining  hold,  on  the  other  hand,  its  corollary,  the  ex- 


88  LABOR  AND  ADMINISTRATION 

emption  of  labor  from  the  conspiracy  laws,  was  being 
established. 

Some  decisions  went  even  further.  Granting  that  it 
is  not  criminal  conspiracy  to  quit  work  in  a  body  in 
order  to  benefit  their  own  members,  it  is  not  easy  to 
draw  the  line  at  quitting  work  in  a  body  to  secure  the 
discharge  of  a  foreman  or  a  non-unionist  whose  acts  are 
injurious  to  the  members.  Though  the  decisions  here 
are  conflicting,  yet  there  were  early  decisions  sustaining 
this  right,  and  so  essential  is  it  to  their  existence  and  so 
persistently  have  the  unions  asserted  it,  that,  amidst 
conflicting  decisions,  many  of  them  have  established 
the  union  shop.  Here  the  logic  of  politics  has  been 
with  them,  and  the  politicians  have  been  more  con- 
sistent than  the  manufacturers,  for  the  high  wages  to 
which  protection  campaigners  point  are  usually  wages 
kept  high  by  a  closed-shop  policy.  Even  the  wages  in 
unprotected  industries  like  the  building  trades,  which 
depend  mainly  on  the  closed  shop,  are  offered  as  evi- 
dence of  protection's  benefits,  while  in  the  protected  in- 
dustries it  is  the  closed-shop  wages  of  tin-plate  workers, 
moulders,  blacksmiths,  etc.,  and  not  the  open-shop  wage 
of  woollen  and  cotton  textiles,  to  which  attention  is 
directed.1 

A  curious  flank  movement  has  taken  place  in  the  use 
of  the  terms  "  closed "  and  "  open "  shop.  As  the 
unions  originally  employed  the  terms,  a  closed  shop  was 
one  which  was  boycotted  or  on  strike,  and  in  which 
consequently  the  union  forbade  its  members  to  work. 
An  open  shop  was  one  where  union  men  were  permitted 
by  the  union  to  get  employment  if  they  could.  To  de- 
clare a  shop  open  was  equivalent  to  calling  off  a  strike 
1  Republican  Campaign  Text-Book,  1904,  pp.  86,  91,  223  et  seq. 


THE  UNION   SHOP  89 

and  boycott.  The  terms  as  now  denned  are  different. 
The  closed  shop,  instead  of  being  non-union,  is  the 
union  shop.  And  the  open  shop  is  declared  open  by 
the  employer  to  admit  non-unionists,  and  not  by  the 
union  to  unionists. 

Yet,  even  from  this  new  standpoint,  the  terms  are  not 
clearly  distinguished.  Many  employers  have  what  they 
call  open  shops,  and  yet  they  employ  only  union  men. 
The  union  would  say  that  these  are  union  shops, 
whereas  the  public  generally  would  call  them  closed. 

The  confusion  arises  from  different  points  of  view. 
The  employer  has  in  mind  the  contract  or  trade  agree- 
ment with  the  union.  He  looks  at  it  from  the  legal  or 
contractual  side.  The  union  has  in  mind  the  actual 
situation  in  the  shop.  They  look  at  it  from  the  side  of 
practical  results.  The  agreements  made  in  the  stove 
industry,  in  bituminous  coal  mining,  in  three-fourths  of 
the  team-driving  agreements,  in  railway  machine  shops 
and  many  others,  are  plainly  open-shop  agreements, 
where  it  is  often  even  stipulated  that  the  employer  has 
the  right  to  employ  and  discharge  whomsoever  he  sees 
fit,  only  reserving  that  he  shall  not  discriminate  on 
account  of  union  membership  or  union  activity.  Many 
agreements  are  silent  on  the  question  of  employment 
and  discharge,  and  in  such  cases  the  presumption  is 
in  favor  of  the  employer's  freedom  in  selecting  his 
men. 

It  is  evident  that  with  these  different  points  of  view 
it  is  difficult  to  reach  an  understanding.  Clearness 
would  be  promoted  by  adopting  a  use  of  terms  which 
would  bring  out  the  above  distinctions  as  they  are 
found  in  practice.  In  doing  so  the  closed  shop  would 
be  viewed  from  the  side  of  the  contract,  and  would  be 


9o  LABOR  AND   ADMINISTRATION 

designated  as  one  which  is  closed  against  the  non- 
unionist  by  a  formal  agreement  with  the  union;  the 
open  shop  as  one,  where,  as  far  as  the  agreement  is  con- 
cerned, the  employer  is  free  to  hire  union  or  non-union 
men;  the  union  shop  as  one  where,  irrespective  of  the 
agreement,  the  employer,  as  a  matter  of  fact,  has  only 
union  men.  Thus  an  open  shop,  according  to  agree- 
ment, might  in  practice  be  a  union  shop,  a  mixed-shop 
or  even  a  non-union  shop.  The  closed  shop  would,  of 
course,  be  a  union  shop,  but  the  union  shop  might  be 
either  closed  or  open.1 

The  contention  of  some  union  defenders  that  the 
term  "  closed  shop  "  is  a  misnomer,  I  do  not  agree  with, 
if  its  use  is  limited  as  here  proposed.  They  say  it  is 
not  closed,  because  any  competent  man  can  get  into  it 
by  joining  the  union.  What  they  really  mean  is  that 
the  union  is  an  open  union,  but  this  is  another  question, 
and  an  important  one.  Much  can  be  said  for  a  closed 
shop  if  the  union  is  open,  but  a  closed  shop  with  a  closed 
union  cannot  be  defended.  The  use  of  terms  above 
proposed  makes  it  possible  to  draw  these  essential  dis- 
tinctions and  to  discuss  each  separate  question  of  fact 
by  itself  and  on  its  merits. 

The  historical  steps  were  somewhat  as  follows.  First, 
the  union  got  the  union  shop  by  quitting  work,  or 
threatening  to  quit,  in  a  body.  Next  they  got  the 
closed  shop  by  a  contract  with  the  employer.  If  the 
employer  would  not  make  a  closed-shop  agreement, 
they  either  retained  their  original  right  to  quit  if  he 
hired  a  non-unionist,  or  their  open-shop  agreement  pro- 
vided for  negotiation  whenever  a  non-unionist  became 

1The  "preferential  union  shop,"  of  the  needle  trades,  works  out  a 
union  shop. 


THE  UNION  SHOP  91 

obnoxious.  In  this  way  the  open-shop  agreement  might 
mean,  in  individual  cases,  the  union  shop  in  practice. 

Now  the  significant  fact  respecting  the  agreements 
just  mentioned  in  the  coal,  stove  foundry,  railway  shops 
and  other  industries,  is  that,  while  they  are  open-shop 
agreements,  they  are,  on  the  whole,  satisfactory  to 
unions  which  in  other  branches  of  their  work  are  most 
uncompromising  for  the  closed  shop.  In  all  cases  their 
satisfaction  is  based  on  three  or  four  considerations.  In 
the  first  place,  the  agreement  is  made,  not  with  each 
shop,  but  with  an  association  of  employers,  including 
the  strongest  competitors  in  the  industry.  It  is  to  the 
interest  of  such  an  association  to  require  all  of  its  mem- 
bers faithfully  to  observe  the  agreement,  because  it 
places  them  all  on  the  same  competitive  level  as  far  as 
wages  are  concerned.  The  employer  who  would  violate 
the  agreement  would  get  an  advantage  over  the  others 
in  the  largest  item  of  his  expenses.  This  the  others,  in 
self-interest,  cannot  permit,  and  consequently  as  long  as 
he  is  a  member  of  the  employers'  association,  the  union 
is  relieved  of  the  burden  of  enforcing  the  agreement, 
and  the  employers  themselves,  as  a  body,  assume  the 
responsibility  of  doing  what  the  union  could  do  only 
by  means  of  the  closed  shop  or  the  strike.  If  the  em- 
ployer persists  in  violating  the  agreement  after  his 
association  has  exhausted  its  powers  of  discipline,  he  is 
expelled,  and  then,  being  no  longer  protected  by  his 
fellow-employers,  he  is  left  to  the  tactics  of  the  union. 

In  the  second  place,  the  agreement  is  made,  not  only 
for  members  of  the  union,  but  for  all  positions  of  the 
same  grade,  whether  filled  by  union  or  by  non-union 
men.  No  employer,  therefore,  can  get  an  advantage,  in 
lower  wages  or  longer  hours,  by  hiring  a  non-unionist. 


92  LABOR  AND  ADMINISTRATION 

No  amount  of  protest  or  solemnity  of  promise,  and,  espe- 
cially, no  appeal  to  the  Declaration  of  Independence 
from  those  protected  by  a  tariff  that  violates  the  Decla- 
ration, can  persuade  the  unions  that  the  employer  wants 
the  open  shop  except  to  get  his  labor  below  the  union 
rate.  Some  employers  and  some  associations  of  employ- 
ers, as  in  the  machinery  line  and  in  iron  and  steel,  have 
been  frank  enough  to  admit  this,  when  they  insist  that 
their  agreement  with  the  union  covers  only  union  men, 
and  that  they  are  free  to  make  a  lower  scale  of  wages 
for  non-union  men.  But,  as  a  rule,  an  agreement  cannot 
stand  for  long  on  such  an  understanding,  and  very  soon 
it  goes  to  pieces  in  a  strike  for  the  closed  shop  or  the 
dissolution  of  the  union.  There  have  been  isolated  ex- 
ceptions where  the  union  is  strong,  and  thinks  that  the 
non-unionist,  in  order  to  get  the  higher  rate  of  pay,  will 
join  the  union.  But,  in  general,  only  when  the  agree- 
ment covers  the  non-unionist  as  well  as  the  unionist,  and 
when  the  employers  show  that  they  have  the  power  and 
the  will  to  enforce  it,  can  the  union  consent  to  the  open 
shop.  Even  this  takes  time,  for  power  and  good  will 
are  shown  only  through  experience,  and  the  workmen 
have  undergone  many  bitter  experiences  of  dishonesty, 
and  many  more  experiences  of  inability,  through  the 
pressure  of  competition  or  changes  in  management,  to 
live  up  to  agreements  honestly  made.  The  stove  found- 
ers, the  soft  coal  operators  and  others,  after  several  years 
of  associated  action,  seem  to  have  won  confidence  in  their 
ability  and  honesty  of  purpose  in  enforcing  their  open- 
shop  agreements,  and  for  this  reason,  the  unions,  though 
not  entirely  satisfied,  are  not  driven  by  their  more  radi- 
cal members  to  demand  the  closed  shop. 

In  the  third  place,  that  clause  of  the  agreement  which 


THE   UNION   SHOP  93 

provides  for  the  so-called  arbitration  of  grievances  cov- 
ers all  matters  of  discrimination  as  well  as  all  matters  of 
wages,  hours  and  rules  of  work.  By  discrimination  is 
meant  all  questions  of  hiring,  discharging  and  disciplin- 
ing both  union  and  non-union  men.  In  this  respect  it 
seems  to  me  a  mistake  was  made  by  the  Anthracite  Coal 
Strike  Commission  in  its  award  as  interpreted  by  the 
umpire,  Colonel  Wright.  The  Commission  had  awarded 
that  no  person  should  be  discriminated  against  on 
account  of  membership  or  non-membership  in  any 
labor  organization,  and  had  provided  a  board  of  con- 
ciliation and  an  umpire  to  decide  any  disagreement  that 
could  not  be  settled  by  the  parties  concerned.  Under 
this  clause  the  umpire  stated  the  principle  involved  as 
follows :  "A  man  has  the  right  to  quit  the  service  of 
his  employer  whenever  he  sees  fit,  with  or  without  giving 
a  cause  .  .  .  and  the  employer  has  a  perfect  right  to 
employ  and  discharge  men  in  accordance  with  the  con- 
dition of  his  industry ;  he  is  not  obliged  to  give  a  cause 
for  his  discharge.  ..." 

The  mistake  in  applying  this  principle  of  reciprocal 
rights  lies  in  the  fact  that  the  union,  under  the  agree- 
ment, had  given  up  its  right  to  strike.  Having  done  so, 
it  gives  up  its  right  to  protect  a  member  against  dis- 
crimination or  unjust  discharge.  In  lieu  of  settling 
such  a  grievance  by  a  strike  the  agreement  sets  up  a 
tribunal  to  investigate  and  decide  according  to  the  facts. 
Of  course,  individuals  retain  their  right  to  quit,  and  the 
employer  retains  his  right  to  discharge,  yet,  since  the 
union  has  abandoned  its  right  to  strike  in  view  of  the 
tribunal,  the  employer  must  be  held  to  have  abandoned 
his  right  to  discharge  a  union  man  whenever  the  union 
alleges  a  grievance  and  appeals  to  the  board.  The  em- 


94  LABOR  AND   ADMINISTRATION 

ployer  always  claims  that  discrimination  was  not  in- 
tended, but  this  is  a  question  of  fact  to  be  determined 
by  the  tribunal.  Otherwise  the  most  vital  injury,  one 
that  concerns  the  very  life  of  the  union,  is  taken  out  of 
the  hands  of  the  board  of  conciliation  and  falls  back 
upon  the  original  remedy  of  the  union  —  the  strike. 
This  is  well  understood  in  all  trade  agreements  except 
the  peculiar  one  in  the  anthracite  coal  industry.  Every 
grievance  or  alleged  grievance  in  the  hiring  or  discharg- 
ing of  union  or  non-union  men  is  taken  up  by  the  officers 
of  the  two  associations  and  settled  on  its  merits,  under 
the  terms  of  the  agreement.  Under  no  other  condition 
could  the  union  be  assured  against  discrimination  or 
unjust  discharge;  which  is  but  another  way  of  saying, 
under  no  other  condition  could  it  trust  itself  to  an  open- 
shop  agreement.  With  this  protection,  the  case  of  each 
non-union  man  can  be  taken  up  in  conference  by  the 
officers  of  the  two  associations,  and  he  can  be  disciplined 
the  same  as  a  union  man  for  any  acts  injurious  to  the 
members  of  the  union  or  menacing  to  the  agreement. 

These  three  conditions,  I  think,  have  been  found 
essential  in  most  open-shop  agreements  that  have  lasted 
for  any  length  of  time :  namely,  a  strong  and  well-dis- 
posed association  on  each  side;  the  same  scale  of  work 
and  wages  for  unionist  and  non-unionist ;  and  the  refer- 
ence of  all  unsettled  complaints  against  either  unionist 
or  non-unionist  to  a  joint  conference  of  the  officers  of 
the  union  and  the  association. 

In  describing  these  conditions  I  have  indicated,  con- 
versely, certain  conditions  under  which  the  union  is 
forced  in  self-protection  to  stand  for  the  closed  shop. 
Such  cases  are  those  where  there  is  no  employers'  associa- 
tion, or  where  the  employers'  association  cannot  control 


THE   UNION   SHOP  95 

all  of  its  members  or  all  of  the  industry,  or  where  the 
association  is  hostile  or  has  a  menacing,  hostile  element 
within  it ;  as,  for  example,  when  it  does  not  insist  that 
its  non-union  or  open-shop  members  shall  pay  the  union 
scale.  In  these  cases  the  maintenance  of  the  scale  and 
the  life  of  the  union  depend  on  maintaining  the  union 
shop.  Whether  it  shall  be  a  closed  shop  or  not,  i.e. 
whether  it  shall  be  unionized  by  a  contract  in  which  the 
employer  binds  himself  to  employ  only  union  men,  and 
becomes,  as  it  were,  a  union  organizer,  or  whether,  as 
far  as  the  trade  agreement  is  concerned,  it  shall  be  an 
open  shop,  depends  on  circumstances,  and  the  same 
union  will  be  found  practising  both  methods,  according 
to  the  locality  or  shop. 

The  closed-shop  contract  has  recently  been  attacked 
in  the  courts,  and  in  some  cases  overthrown,  on  the 
ground  of  illegality.  Without  branching  into  that  side 
of  the  question,  it  should  be  noted  in  passing  that  such 
a  contract  usually  carries  a  consideration.  If  the  union 
has  a  label  protected  by  law,  this  is  a  valuable  consider- 
ation which  the  employer  cannot  be  expected  to  enjoy 
unless  he  agrees  to  employ  only  union  men,  and  conse- 
quently all  label  agreements  of  the  garment  workers, 
brewery  workers,  boot  and  shoe  workers  and  others  are 
closed-shop  agreements.  However,  the  main  considera- 
tion to  the  employer  is  the  enlistment  of  a  responsible 
national  authority  on  the  part  of  the  union  to  compel  the 
local  union  or  shop  to  fulfil  its  side  of  the  agreement. 
The  local  union  is  moved  by  personal  feelings,  but  the 
national  officers  have  wider  responsibilities  and  a  more 
permanent  interest  in  living  close  to  the  letter  and  the 
spirit  of  the  agreements.  This  is  the  consideration  dis- 
tinctly stated  in  the  agreements  of  the  Typographical 


96  LABOR  AND  ADMINISTRATION 

Union  with  the  Newspaper  Publishers'  Association,  sev- 
eral of  whose  members  have  non-union  or  open  shops,  it 
being  agreed  that  the  national  union  will  underwrite 
every  closed-shop  agreement  made  by  a  publisher  with 
a  local  union.  The  same  consideration  is  found  in  the 
longshoremen's  agreements,  in  all  label  agreements, 
and  though  not  always  expressly  stipulated,  it  is  under- 
stood to  exist,  more  or  less,  in  all  agreements  whether 
actually  underwritten  by  the  national  officers  or  not.  If 
the  employer  wishes  the  national  union  to  be  responsi- 
ble for  its  local  members,  he  logically  will  agree  to  em- 
ploy only  members  of  the  union.  The  open  shop,  by 
the  very  terms  of  the  contract,  leaves  it  to  the  em- 
ployer to  enforce  the  agreement  by  hiring  non-union 
men,  but  the  closed  shop  makes  the  national  union 
responsible  by  requiring  it  to  discipline  the  local  union 
or  even  to  furnish  other  union  men.  It  is  this  consider- 
ation, more  than  anything  else,  that  has  led  the  stove 
founders  and  other  employers'  associations,  under  open- 
shop  agreements,  to  watch  without  protest  the  gradual 
unionizing  of  nine-tenths  of  their  shops. 

There  is  no  doubt  that  the  object  which  all  unions 
aim  to  reach  is  the  complete  unionizing  of  the  trade. 
In  support  of  this  there  are  two  kinds  of  arguments, 
one  of  which  I  should  call  sentimental,  the  other  eco- 
nomic or  essential.  Certain  of  the  economic  arguments 
I  have  just  indicated.  But  there  are  some  places  where 
these  do  not  apply ;  and  a  union  which  relies  solely  on 
a  sentimental  argument  cannot  win  the  support  of  the 
public,  which  eventually  makes  the  laws  and  guides  the 
decisions.  This  sentimental  argument  holds  that  he 
who  is  benefited  should  bear  his  share  of  the  expenses 
of  the  benefactor.  The  union  which  raises  wages  and 


THE   UNION   SHOP  97 

shortens  hours  should  be  supported  by  all  whose  wages 
and  hours  are  bettered,  and  the  non-unionist,  because 
he  refuses  support,  should  be  shut  out  from  employment. 
An  argument  like  this,  if  not  backed  by  an  evident 
necessity,  falls  under  attack.  Such  is  the  case  in  gov- 
ernment and  municipal  employment.  The  government 
fixes  a  scale  of  wages.  In  the  United  States  this  scale 
is  considerably  above  the  scale  in  similar  private  em- 
ployment. Trade  unions  have  doubtless  taken  the  lead 
in  establishing  these  favorable  conditions,  but  they 
really  depend,  not  on  the  unions,  but  on  politics.  They 
are  the  natural  outcome  of  universal  suffrage,  and  are 
not  found  to  the  same  extent  in  countries  or  localities 
where  the  labor  vote  is  weak  or  labor  is  newly  enfran- 
chised. Formerly  the  political  party  filled  such  posi- 
tions with  its  partisans.  The  situation  is  no  worse 
when  the  union  fills  them  with  its  members.  But  com- 
petitive civil  service,  or  civil  service  reform,  is  an  ad- 
vance on  both  partisanship  and  unionism.  Government 
pays  the  scale  to  all  alike.  There  is  no  competition  of 
outsiders  to  force  it  down.  The  state  can  be  a  model 
employer,  because  its  products  do  not  compete  on  the 
market.  The  non-unionist  or  the  aggressive  employer 
is  not  a  menace  to  the  wages  of  government  employees. 
If  the  government  should  let  out  its  work  to  the  lowest 
bidder,  the  union  then  could  maintain  a  scale  only  by 
the  union  shop.  But  when  the  government  hires  its 
own  workmen,  the  union  shop  is  not  needed.  A  strike 
would  be  absurd,  and  the  appeal  for  fair  wages  must  be 
made  to  the  people  at  large,  through  their  representa- 
tives. The  appeal  is  ethical  and  political,  and  not  to 
the  judgment  of  a  strike,  and  such  an  appeal  is  stronger 
when  free  from  the  onus  of  an  exclusive  privilege. 


98  LABOR  AND  ADMINISTRATION 

This  is  not  saying  that  government  employees  should 
not  be  organized.  In  fact,  the  highest  form  of  civil 
service  in  a  nation  committed  to  representative  de- 
mocracy is  that  where  the  public  employees  are  organized 
in  a  union,  so  that  all  grievances  can  be  taken  up  by 
their  agents  and  "  arbitrated  "  with  the  head  of  the 
department.  This  was  demonstrated  by  Colonel  War- 
ing in  the  Street  Cleaning  Department  of  New  York, 
and  he  showed  that  only  by  requiring  his  employees  to 
join  in  a  union  could  partisan  politics  be  wholly  shut 
out  and  the  highest  efficiency  secured.  But  this  sort  of 
unionizing  depends  on  a  favorable  administration  and 
an  enlightened  public  opinion,  and  not  on  the  strike  or 
the  closed  shop. 

There  is  a  class  of  private  employment  similar  to  that 
of  government  employment  in  the  conditions  which 
make  the  closed  shop  unnecessary.  This  is  railway 
transportation.  A  railway  company  establishes  a  scale 
of  wages  for  its  higher  classes  of  employees.  This  scale 
is  uniform  over  its  system,  is  paid  to  all  alike,  and  is  not 
nibbled  down  by  dickers  with  individuals.  When  the 
railway  brotherhoods  accept  such  a  scale,  they  know 
that  it  will  be  paid  to  non-unionist  as  well  as  unionist. 
Therefore  they  do  not  even  ask  that  it  be  put  in  the 
form  of  an  agreement,  but  are  content  that  it  simply  be 
issued  as  a  general  order  from  the  manager.  They 
probably  would  take  a  different  view  if  the  company 
let  out  the  hiring  of  employees  to  the  lowest  bidder 
among  competing  contractors,  or  even  if  they  them- 
selves tried  to  maintain  a  scale  for  section  hands  who 
are  not  protected  by  a  long  line  of  promotion.  They 
certainly  would  refuse  to  work  with  a  non-member 
to  whom  the  company  insisted  on  paying  lower  wages 


THE   UNION  SHOP  99 

than  the  scale.  The  closed-shop  policy  on  the  rail- 
roads could  be  supported  only  by  the  sentimental 
argument,  and  the  railway  brotherhoods  have  recog- 
nized its  futility  when  not  backed  by  the  economic 
argument,  fit  is  most  significant  that  the  agreements 
of  the  machinists'  union  for  railway  shops  are  likewise 
open-shop  agreements,  similar  to  the  brotherhood  agree- 
ments, issued  as  a  scale  of  wages  by  general  order  for 
the  entire  system  and  making  no  mention  of  the  union. 
This  is  also  true  of  the  machinists  in  government  navy 
yards  and  arsenals,  where  the  union  has  won  several 
advantages  for  members  and  non-members  alike. j  This 
is  the  union  which,  in  general  manufacturing,  outside 
railway  and  government  work,  has  been  most  bitterly 
assailed  for  its  closed-shop  principles,  but  it  is  evident, 
from  the  contrast,  that  these  principles  have  been  forced 
upon  the  union  by  the  different  character  of  the  industry 
and  the  different  attitude  of  employers. 

The  situation  is  different  with  street  railways.  Some 
of  these  companies  are  conducted  on  a  large  scale  like 
interstate  roads,  and  the  unions  are  safe  with  an  open- 
shop  agreement.  Others  are  conducted  like  shops,  and 
the  street  railway  union  seeks  closed  agreements,  and 
has  been  known  in  a  few  cases  to  go  on  strike  against 
non-union  men.  This  union  is  entirely  different  from 
the  brotherhoods  in  that  it  admits  to  membership  every 
employee  of  the  company,  including  even  the  car  cleaners, 
excepting  only  those  who  already  belong  to  an  old-line 
trade  union.  Its  motormen  and.  conductors  are  not 
protected  by  a  long  period  of  apprenticeship  or  slow  line 
of  promotion,  like  the  locomotive  engineers  and  railway 
conductors,  and  consequently  their  places  can  be  filled 
by  men  fresh  from  the  farm  or  from  any  other  occupa- 


ioo  LABOR  AND  ADMINISTRATION 

tion  or  profession.  In  fact,  the  union  contains  ex-lawyers, 
ex-ministers,  college  graduates,  and  a  variety  of  ex-talent 
that  is  unique.  To  them,  therefore,  the  closed  shop  is 
often  essential,  and  to  the  companies  also  it  is  an  advan- 
tage, for  the  international  union  then  guarantees  the  local 
contract. 

The  sentimental  argument,  of  which  I  spoke  as  ap- 
plied to  government  work,  sometimes  becomes  more 
than  sentimental  when  applied  to  private  employment, 
even  where  the  non-unionist  gets  the  same  pay  as  the 
unionist.  There  are  always  selfish  and  short-sighted 
members  in  a  union.  If  they  see  a  non-unionist  enjoy- 
ing the  same  privileges  with  themselves  without  the 
expense  of  union  dues,  and  especially  if  the  foreman 
shows  a  preference  for  the  non-unionist,  they  too  de- 
mand exemption  from  union  burdens.  Thus  the 
union  disintegrates,  and  a  cut  in  wages  or  stretch 
in  hours  cannot  be  warded  off.  Experience  is  a  hard 
teacher  and  has  taught  this  lesson  thoroughly.  It  is 
not  a  mistake  that  the  persistent  non-unionist  in  pri- 
vate employment  should  be  looked  upon  generally  as 
a  menace. 

Another  fact  regarding  this  sentiment  is  often  over- 
looked. Being  compelled  to  work  together  and  help 
one  another  in  the  same  shop,  men's  feelings  toward 
each  other  are  personal  and  intense.  The  employer  in 
his  office  need  never  see  the  competitor  whom  he  is  try- 
ing to  crush,  and  only  their  products  meet  on  the  market. 
He  scarcely  can  understand  that  his  workmen  in  the 
shop  are  also  competitors  of  each  other,  but,  in  addi- 
tion, are  under  enforced  personal  contact,  and  their 
sentiments  cannot  be  kept  down.  What  to  him  is 
business  seems  malice  in  them.  Yet  these  feelings  are 


THE   UNION   SHpP  «:oi, 

really  a  factor  in  his  cost  of  production,  as  much  as  the 
coal  under  the  boiler  or  the  oil  on  the  bearings.  It  is 
not  surprising  that  the  open  shop,  even  from  the  em- 
ployers' standpoint,  is  not  permanently  practicable,  and 
tends  to  become  either  union  or  non-union. 

It  would  be  possible  to  run  down  the  entire  list  of 
unions,  and  to  show  in  each  case  the  industrial  circum- 
stances which  make  the  union,  or  closed,  shop  necessary 
or  unnecessary  from  the  standpoint  of  maintaining 
wages.  Wherever  there  is  a  large  number  of  small  con- 
tractors, as  in  the  building  trades  or  the  clothing  indus- 
try, an  open-shop  union  cannot  survive.  The  building 
trades  in  London,  though  less  effective  on  wages  than 
American  unions,  are  nevertheless  safe  with  their  open- 
shop  agreements,  because,  in  addition  to  the  fact  that  the 
unions  are  not  compelled  to  protect  the  common  laborer 
working  with  them,  the  master  builder  does  not  sublet 
his  work,  but  has  his  own  large  establishment  and  per- 
manent force,  and  hires  all  the  trades  directly.  He 
takes  up  all  grievances  when  they  arise,  including  the 
grievance  of  the  non-unionist.  But  in  the  United 
States  the  master  builder  has  usually  only  an  office 
force.  He  sublets  all  but  the  mason  work  to  ten  or 
thirty  different  contractors.  These  contractors  often 
require  little  or  no  capital,  and  a  mechanic  to-day  may 
be  a  contractor  to-morrow.  A  non-union  contractor, 
with  his  lower  wages  and  imported  labor,  would  soon 
drive  the  union  contractor  out  of  business.  The  build- 
ing trades  are  therefore  compelled  to  put  their  closed- 
shop  policy  foremost,  and  where  they  have  been  defeated 
in  this  policy,  as  in  Chicago  in  1900,  they  have  soon 
regained  all  they  lost  of  the  union  shop,  even  though 
working  under  explicit  open-shop  agreements. 


IP 2  LABOR  AND   ADMINISTRATION 

In  the  clothing  trades,  the  sweat-shop  is  simply  the 
open  shop ;  for  the  sweat-shop  is  the  small  contractor 
with  fresh  immigrants,  long  hours  and  minute  division 
of  labor,  crowding  into  the  market  and  underselling 
the  shops  where  wages,  hours  and  conditions  are  better. 
Such  would  unquestionably  have  been  the  outcome 
in  the  building  trades  had  the  unions  not  been  able 
to  enforce  the  closed  shop.  No  amount  of  good  will 
on  the  part  of  clothing  manufacturers  or  master  builders 
could  stand  against  a  market  menaced  with  the  prod- 
uct of  open  shops.  It  was  through  the  open  shop 
that  the  American-born  tailor  was  displaced  by  the 
Irish  and  German  tailor;  that  the  Irish  and  German 
were  displaced  by  the  Jew  and  by  Polish  women ;  and 
that  the  Jew  is  now  being  displaced  by  the  Italian.  In 
the  building  trades  the  Irish,  Germans  and  Americans 
have  stopped  this  displacement  by  means  of  the  closed 
shop.  The  Jew  is  vainly  trying  to  stop  it,  and  the 
Scandinavian  in  Chicago  until  recently  had  stopped  it 
in  one  branch  of  the  clothing  trade.  Each  displace- 
ment has  substituted  a  race  with  a  lower  standard  of 
living.  As  soon  as  a  race  begins  to  be  Americanized 
and  to  demand  a  higher  standard,  another  still  lower 
standard  comes  in  through  the  open  shop.  This  is  the 
history  of  many  American  industries.  Whether  the 
conditions  in  the  clothing  trade  are  preferable,  for  the 
American  nation,  to  conditions  in  the  building  trades, 
is  a  question  open  for  differences  of  opinion.  The  dif- 
ference, however,  is  not  apparent  among  the  workmen 
in  those  trades.  The  immigrant,  the  manufacturer,  the 
consumer,  may  hold  a  different  view,  but  if  so,  it  should 
be  understood  that  the  question  in  dispute  is  that  of  the 
wages  of  those  workmen.  As  things  are,  the  union  shop 


THE   UNION  SHOP  103 

or  closed  shop  is  the  wage-earners'  necessary  means  to 
that  end. 

It  is  sometimes  asserted  that  American  unions,  like 
the  British  unions,  should  place  more  reliance  on  reserve 
funds,  benefit  and  insurance  features,  and  that,  with 
these  attractions,  they  would  not  have  been  compelled 
to  put  forward  so  strongly  the  closed-shop  policy.  The 
British  workman  joins  the  union  at  the  close  of  his 
long  period  of  apprenticeship,  and  his  motive  is,  not  the 
coercion  of  the  closed  shop,  but  rather  insurance  against 
sickness,  death,  loss  of  tools  and  out-of-work.  His  union 
is  like  the  American  railway  brotherhoods,  which  also 
rely  on  insurance  and  previous  promotion.  But  the 
American  unions  do  not  have  this  period  of  apprentice- 
ship to  work  upon,  except  as  they  have  established  it 
by  the  union  shop.  They  are  confronted  by  foreigners 
in  language,  modes  of  thought  and  standards  of  living, 
pressed  on  by  necessities  in  a  strange  country,  and 
eligible  without  previous  training  on  account  of  minute 
division  of  labor.  Should  American  unions  wait  slowly 
to  build  up  their  organization  on  the  open-shop  and  in- 
surance-benefit policies,  they  would  be  displaced  by 
foreigners  before  they  could  get  a  start.  The  foreigners 
again  would  have  to  set  up  the  union  shop  as  soon  as 
they  in  turn  began  to  demand  better  conditions  and 
were  confronted  by  a  new  race  of  immigrants.  This  is 
exactly  what  they  have  done,  and  the  union  or  closed 
shop  in  America  is  necessary  to  support  those  very  in- 
surance and  benefit  features  which  are  proposed  as  a 
substitute  for  it. 

That  there  are  many  serious  problems  springing 
from  labor  unions  is  evident.  But  they  would  properly 
be  discussed  under  other  headings-.  The  present  dis- 


io4  LABOR  AND  ADMINISTRATION 

cussion  is  not  merely  of  their  good  or  bad  methods  — 
it  is  of  their  existence  and  their  power  to  raise  wages. 
Under  a  different  order  of  industry  or  a  socialistic  policy 
of  government,  unions  might  be  superfluous.  Their  ex- 
istence and  their  methods  arise  from  the  nature  of  the 
industry  and  the  attitude  of  employers.  A  method  nec- 
essary in  the  building  trades  or  coal  mines  may  be  super- 
fluous on  the  railroads.  Their  methods  also  arise  from 
the  universal  human  struggle  for  power.  No  institution 
or  individual  can  be  trusted  with  absolute  power.  Con- 
stitutional government  is  a  device  of  checks  and  balances. 
Employers'  associations  are  just  as  necessary  to  restrain 
labor  unions,  and  labor  unions  to  restrain  employers' 
associations,  as  two  houses  of  Congress,  a  Supreme 
Court,  a  president  and  political  parties,  to  restrain  social 
classes.  Progress  does  not  come  when  one  association 
d'estroys  the  other,  but  when  one  association  destroys 
the  excesses  of  the  other.  This  kind  of  progress  is  going 
on  in  the  several  industries  mentioned  above.  There 
the  open-shop  question  has  never  been  even  considered 
or  mentioned,  or  else  in  course  of  time  it  has  become 
only  an  academic  question,  because  the  employers' 
association  takes  up  and  remedies  every  real  grievance, 
or  disproves  every  fictitious  grievance,  that  provoked 
the  union  into  existence,  and  does  not  permit  any  of  its 
members  to  "  smash  "  or  undermine  the  union.  The 
bad  methods  of  the  union  are  gradually  reduced  by  dis- 
cussion backed  by  the  power  of  organization,  and  its 
good  methods  are  encouraged.  Education  improves 
both  parties;  mutual  respect  succeeds  suspicion.  In 
those  industries  it  is  accepted  that  protection  to  capi- 
tal carries  with  it  protection  to  labor ;  that  fair  profits 
imply  fair  wages;  that  well-disposed  associations  on 


THE  UNION   SHOP  105 

each  side  shall  together  discipline  the  non-unionist  the 
same  as  the  unionist;  that  the  employers,  having  lost 
despotic  control  of  their  labor,  regain  a  nobler  control 
through  cooperation  with  the  union ;  that  the  opposition 
to  non-unionist  is  not  based  alone  on  sentiment  or  mal- 
ice, but  on  economic  necessity;  and  that  a  question, 
which  only  stirs  up  class  hatred  in  the  field  of  pronun- 
ciamentoes  and  abstract  rights,  works  out  a  peaceable 
solution  when  men  acknowledge  the  facts  and  their 
mutual  rights. 


CHAPTER  VIII 

UNIONS    OF   PUBLIC   EMPLOYEES1 

THE  subject  is :  Should  public  employees  organize  as 
trade  unions?  Should  they  organize  for  the  sake  of 
getting  increased  wages,  reducing  the  hours  of  labor, 
getting  fair  treatment  in  matters  of  discipline,  including 
promotion  and  discharge  ?  A  trade  union  is  an  organiza- 
tion with  such  purposes.  The  subject  does  not  concern 
beneficial  or  social  organizations,  which  may  possibly 
take  up  questions  of  wages  and  hours,  but  do  not  exert 
pressure.  The  related  question  is,  Should  such  an 
organization,  with  these  purposes  in  view,  be  affiliated 
with  the  labor  movement  in  general?  Should  it  belong 
to  central  bodies?  Should  it  seek  the  support  of  other 
unions  in  promoting  its  own  purposes  ? 

There  are  certain  features  of  public  employment  which 
require  a  distinction  in  methods.  Methods  may  differ 
at  some  points,  owing  to  the  difference  in  character  of 
public  and  private  employment.  If  employees  organize 
for  improving  wages,  hours  and  conditions,  it  follows  that, 
as  a  final  resort,  they  have  the  power  of  quitting  work 
in  a  body.  But,  if  I  understand  the  trade  union  move- 
ment, a  properly  organized  union  has,  preliminary  to 
going  on  strike,  a  constitutional  requirement  that  the 
differences  shall  be  submitted  to  arbitration.  This  is 
the  difference  between  unionism  and  syndicalism. 

1  Address  before  the  Women's  Trade  Union  League  at  Chicago.  See 
Union  Labor  Advocate,  Oct.,  1907,  pp.  140-143. 

106 


UNIONS   OF   PUBLIC   EMPLOYEES  107 

Here,  the  methods  of  public  and  private  unions  are 
alike. 

But  an  organization  of  public  employees  should  not 
rely  upon  the  strike,  in  the  first  instance.  It  may  be 
that  on  Russian  railroads  a  strike  is  the  proper  procedure 
and  the  only  one  which  can  be  adopted.  But,  in  our 
western  civilization  it  is  not  necessary  that  these  unions 
should  strike,  because  they  have  another  weapon  — 
politics.  The  organizations  of  public  employees,  through 
universal  suffrage,  have  the  support,  as  a  rule,  of  the 
wage-earning  voters,  and,  if  they  can  make  it  plain  to 
the  voters  that  their  demands  are  just,  then  eventually 
they  can  bring  about  the  changes  which  arbitration  in 
their  case  would  decide  to  be  fair. 

Another  difference  between  organizations  of  public 
employees  and  those  of  private  employment  relates  to 
the  open  and  closed  shop,  so  called.  The  reasons  ad- 
vanced for  the  closed-shop  policy  in  the  case  of  private 
employment  do  not  hold  good  in  the  case  of  public 
employment.  The  private  employer  is  subject  to  com- 
petition. He  is  trying  to  get  his  labor  as  cheaply  as 
possible.  If  there  is  an  agreement  between  a  union  and 
a  private  employer,  and  it  is  possible  for  him  to  employ 
men  who  are  not  members  of  the  organization,  it  natu- 
rally follows  that  secret  agreements  or  concessions  will 
be  made  with  those  non-union  employees  which  will 
gradually  cut  below  the  scale  which  the  union  has 
established.  In  the  ordinary  competitive  lines  of  em- 
ployment it  is  scarcely  possible  for  a  trade  union  to 
maintain  its  scale  of  wages  without  insisting  that  all  of 
the  employees  shall  belong  to  the  union.  Such  insist- 
ence is  necessary  in  order  to  protect  the  employer 
from  his  competitor.  He  is  not  free  to  do  as  he  pleases, 


io8  LABOR  AND  ADMINISTRATION 

even  though  he  seriously  intends  to  pay  the  union  scale 
of  wages. 

But  the  situation  in  the  case  of  the  public,  as  em- 
ployer, is  different.  The  city,  or  state  or  nation  is 
not  subject  to  the  competition  of  private  employers ;  it 
establishes  a  scale  of  wages  for  the  different  grades  of 
service,  and  it  pays  that  scale  of  wages  out  of  revenue 
derived  from  taxation,  if  necessary.  The  management 
of  the  public  service  is  governed  by  a  scale  of  wages 
and  hours  which  has  the  effect  of  law,  and  it  is  not  driven 
to  reduce  the  price  by  indirect  methods.  Consequently, 
the  essential  condition  which  is  sought  to  be  secured 
by  the  so-called  closed  shop  in  private  employment  is 
secured  by  law  in  public  employment  for  both  union  and 
non-union  employees. 

There  are  two  lines  of  argument  which  trade  unionists 
usually  put  forward  for  the  closed  shop :  One,  an  eco- 
nomic reason.  It  is  simply  a  necessary  means  —  unfor- 
tunate perhaps,  but  necessary  -  -  of  securing  the  actual 
payment  of  a  scale  of  wages  agreed  upon.  The  other  is 
a  sentimental  reason.  The  trade  unionist  feels  that  a 
man  who  is  getting  the  advantages  which  the  unions 
have  secured  in  high  wages  is  an  ungrateful  man,  greedy 
and  selfish,  if  he  does  not  pay  union  dues  and  help  out 
the  organization.  This  sentimental  reason  cannot  stand 
alone.  Every  one  of  us  gets  advantages  in  society  that 
we  do  not  pay  for.  We  receive  advantages  which  others 
have  secured  for  us.  If  we  do  not  contribute  in  a  proper 
way  to  promote  the  common  advantage  of  our  fellows 
and  ourselves,  that  is  something  which  must  be  left 
to  our  private  judgment,  influenced  by  the  opinion  of 
our  fellows. 

With   the   proper   organization  of   public  employees 


UNIONS   OF   PUBLIC   EMPLOYEES  109 

the  open-shop  principle  is  not  a  menace  to  the  union 
organization.  Recognition  of  the  union,  and  dealing 
with  it  as  such,  which  are  essential  to  this  public  organ- 
ization, make  it  to  the  advantage  of  every  man  in  the 
service  to  go  into  the  organization  as  soon  as  he  is  em- 
ployed in  the  department. 

This  being  the  starting-point,  I  will  take  up  certain 
objections  usually  brought  forward  against  organizations 
of  employees  in  public  service.  One  of  the  objections 
is  that  it  interferes  with  the  discipline  of  the  department ; 
that  it  prevents  that  freedom  in  handling  the  employees 
which  is  necessary  for  efficiency  of  the  service ;  that 
it  introduces  arbitrary  plans  of  promotion,  grading  and 
so  on,  which  interfere  with  the  best  interests  of  the 
public  service. 

As  far  as  my  observation  goes,  I  find  that  a  proper 
organization  of  public  employees  works  in  exactly  the 
opposite  direction ;  that  not  only  does  it  not  interfere 
with  the  efficient  management  of  the  service,  but  it  is  a 
protection  for  the  service  against  one  of  the  greatest 
evils  by  which  public  employment  is  menaced  in  demo- 
cratic communities;  namely,  the  interference  of  the 
politician. 

When  Seth  Low  was  elected  mayor  of  New  York, 
some  ten  years  ago,  he  appointed  as  his  commissioner 
of  street  cleaning  one  of  the  most  eminent  engineers 
in  this  country,  Colonel  George  E.  Waring.  When 
Colonel  Waring  came  into  the  street-cleaning  depart- 
ment, he  found  political  chaos.  There  had  been  and  was 
still  in  existence  a  remnant  of  an  old  organization  of 
the  Knights  of  Labor.  There  were  other  organizations 
purely  local.  But,  common  to  all  these  organizations 
was  the  fact  that  they  were  linked  in  some  way  with 


no  LABOR  AND  ADMINISTRATION 

ward  politicians,  or,  as  they  are  called  in  New  York, 
district  leaders.  If  the  Knights  of  Labor  wanted  to 
secure  an  advantage  for  any  member,  they  went  to  the 
Tammany  politician,  who  went  to  the  commissioner  of 
street  cleaning,  or  to  the  mayor,  and  secured  the  desired 
promotion,  or  relaxation  of  discipline  or  release  from 
punishment.  Waring  found  this  situation  in  the  depart- 
ment of  street  cleaning.  People  who  object  to  the 
organization  of  public  employees  might  very  properly 
object  to  the  kind  of  organization  which  he  found.  It 
was  not  bona  fide  labor  organization,  although  it  was  an 
organization  of  labor.  It  was  an  affiliation  between 
so-called  labor  unions  and  the  Tammany  politicians. 

The  first  thing  that  Waring  did  when  he  came  into  the 
department  was  to  propose  that  a  single  organization  of 
all  employees  should  be  recognized  as  a  part  of  the 
administration.  He  instructed  all  of  the  street  cleaners, 
the  drivers  and  sweepers,  to  organize  their  local  unions 
at  the  several  stables,  —  forty-one  of  them.  Then 
these  stables,  or  "  locals,"  were  to  elect  forty-one  dele- 
gates to  a  "  general  committee,"  which  should  represent 
all  of  the  employees.  This  general  committee,  then, 
should  elect  a  committee  of  five,  whom  he  called  "  spokes- 
men." The  spokesmen  were  to  meet  in  joint  session, 
whenever  necessary,  with  five  superintendents  or  heads 
of  departments,  named  by  Waring  himself.  The  ten 
were  known  as  the  "  Board  of  Conference."  Then, 
if  any  street  sweeper  or  driver  had  a  grievance,  instead 
of  going  to  his  district  leader,  a  Tammany  politician, 
he  brought  up  that  grievance  in  the  secret  union  meeting 
of  his  fellows  at  the  stable  where  he  reported.  If  his 
fellow-workmen  indorsed  his  grievance  as  a  legitimate 
matter  which  they  would  stand  for,  then  their  delegate 


UNIONS   OF  PUBLIC   EMPLOYEES  in 

on  the  committee  of  forty-one  brought  it  before  that 
committee,  and  if  that  committee  indorsed  it  as  a  legiti- 
mate grievance  which  should  be  remedied,  it  was  handed 
on  to  their  five  spokesmen,  who  brought  it  before  the 
Board  of  Conference. 

There  is  a  full  report  of  the  two  years'  operation  of 
that  system.1  We  find  that,  in  the  second  year,  of  some 
1 100  grievances  which  were  brought  before  the  committee 
of  forty-one,  about  830  of  them  were  turned  down  by  the 
men  themselves  in  their  secret  union  meetings.  That 
is,  nearly  four-fifths  of  the  "  kicks  "  were  found  to  be 
unwarranted  by  their  fellow-workers.  Their  fellow- 
employees  would  not  stand  for  their  alleged  griev- 
ances. 

See  what  a  fruitful  field  was  taken  away  from  the  politi- 
cian. Here  were  noo  grievances  which  the  politicians 
might  have  taken  up  and  carried  to  the  head  of  the 
department.  But  the  men  themselves,  when  it  was 
once  perceived  that  their  union  was  to  be  held  responsible, 
would  not  allow  them  to  be  taken  up.  Then  of  the  270 
grievances  which  were  referred  to  the  Board  of  Con- 
ference, every  one  was  settled  except  one.  There  was 
but  one  case  that  was  not  settled  either  by  the  men 
themselves  or  by  the  Conference  Board.  This  case 
came  up  to  Commissioner  Waring,  and  he,  after  hearing 
it,  decided  in  favor  of  the  employee. 

I  consider  that  this  invention  of  Commissioner  War- 
ing in  the  street  cleaning  department  of  New  York  is 
the  most  important  practical  contributi6n  that  has  been 

1  Published  as  a  supplement  to  "Municipal  Affairs,"  June,  1898,  pp. 
226-234.  This  important  document  was  not  printed  officially  by  the 
city,  but  has  been  made  available  through  the  public  spirit  of  the  Reform 
Club,  of  New  York. 


ii2  LABOR  AND  ADMINISTRATION 

made  to  civil  service  reform  in  a  democratic  government. 
It  practically  did  almost  all  the  work  that  a  civil  service 
commission  usually  is  required  to  do.  At  the  same  time, 
it  had  the  advantage  over  a  civil  service  commission  in 
that  it  was  self-governing.  It  involved  only  the  men 
in  the  department  and  did  not  rely  upon  an  outside 
committee  of  reformers  to  interfere  in  the  management 
of  the  department.  It  allowed  Commissioner  Waring 
and  the  superintendents  to  promote  men  and  discharge 
men,  to  do  as  they  pleased  in  the  management  of  the 
department  —  always  under  the  check  that  the  man 
thus  disciplined  could  bring  his  treatment  as  a  grievance 
before  his  fellow-workmen  and  have  it  taken  to  the 
highest  court  provided  within  the  department.  It 
gave  freedom  to  the  superintendents  and  the  management 
of  the  department,  which  civil  service  reform  does  not 
do,  and,  at  the  same  time,  gave  justice  to  the  workman, 
which  civil  service  reform  attempts  to  do.  But  it  was 
done  by  men  directly  interested  in  the  department,  who 
were  conversant  with  all  the  details  and  had  all  the 
knowledge  necessary  to  a  proper  decision.  I  should 
think  that  such  an  organization  of  a  public  department 
could  go  still  further  towards  self-governing  civil  service, 
and  be  made  the  examining  board  for  admission  to  the 
service,  as  well  as  grievance  board  for  suspensions  and 
dismissal. 

As  everybody  now  knows,  if  he  is  familiar  with  the 
history  of  New  York,  this  particular  measure  of  Colonel 
Waring's  brought  up  the  most  inefficient  department  of 
the  city  government  to  the  highest  point  of  efficiency. 
It  elevated  the  street-cleaning  department  from  a 
scramble  for  spoils  to  an  efficient  municipal  administra- 
tion. It  took  it  entirely  out  of  politics,  eliminated  the 


UNIONS   OF  PUBLIC   EMPLOYEES  113 

ward  boss,  and  it  is  not  surprising  that  Tammany  Hall, 
when  it  returned  to  power,  abolished  the  system. 

Tammany  politicians  and  similar  politicians  are  op- 
posed to  labor  unions.  They  are  ostensibly  the  friends 
of  labor.  They  espouse  unions.  They  advocate  the 
cause  of  labor.  But  when  we  get  down  to  the  fine  points 
and  discover  just  what  kind  of  labor  organization  they 
want,  and  what  is  to  be  accomplished  by  it,  we  find  that 
they  are  like  other  employers.  They  do  not  want  a 
kind  of  labor  organization  that  interferes  with  their 
management.  The  politician  necessarily  must  be  op- 
posed to  the  organization  of  municipal  employees  if  he 
is  going  to  make  anything  out  of  the  public  service  for 
himself. 

It  is  an  interesting  fact  that,  about  the  same  time  that 
Colonel  Waring  was  introducing  his  system  in  New  York, 
in  another  part  of  the  world  a  similar  system  was  being 
introduced.  In  New  Zealand,  in  1894,  and  in  Victoria 
and  New  South  Wales  afterwards,  there  was  introduced 
in  the  government  railway  service  and  in  the  post-office 
and  telegraph  service,  the  so-called  system  of  "  appeal 
boards."  These  appeal  boards,  in  New  Zealand,1 
were  simply  a  system  by  which  the  employees  of  the 
service  elected  their  representative,  the  government 
elected  its  representative,  and  a  third  person,  a  judge  of 
one  of  the  courts,  was  designated  as  the  presiding  officer. 
In  the  government  service,  if  an  employee  of  the  service 
has  a  grievance,  he  brings  it  to  his  representative  on 
this  appeal  board.  He  can  be  represented  there  by 
a  fellow-employee.  Lawyers  are  not  admitted.  This 
fellow-employee  may  be  the  secretary  of  his  union,  or 

1U  Government  Railways  Act,  1894  and  1896.    Orders  in  Council." 
New  Zealand  Gazette,  Sept.  23,  1897. 
I 


ii4  LABOR  AND  ADMINISTRATION 

any  person  in  the  service  competent  to  represent  him  in 
the  settlement  of  his  grievance.  All  the  cases  of  disci- 
pline in  which  a  grievance  is  alleged  are  brought  before 
this  board. 

This  system  is  not  as  democratic  as  Colonel  Waring's, 
but  it  is  more  than  a  mere  coincidence  that  these  two 
things  happened  in  different  parts  of  the  world  at  the 
same  time.  The  explanation  is  that,  both  in  Australia 
and  in  this  country,  we  are  attempting  a  new  experiment 
in  the  world  —  running  a  government  by  universal 
suffrage.  It  is  an  easy  matter  for  the  governments  of 
England  and  Germany,  whether  in  cities  or  nation,  to 
maintain  discipline  in  the  departments,  because  the 
workingmen  have  little  political  influence.  But  we  are 
trying  to  run  the  public  service  with  hired  help  that  is 
a  partner  in  running  it.  In  England  it  does  not  matter 
so  much,  because  the  municipal  councils,  until  the  last 
few  years,  have  been  solely  of  the  employing  class.  I 
got  pretty  well  acquainted  last  year  with  several  town 
councils  of  England,  and  they  were  made  up  mainly  of 
just  the  same  class  of  men  as  I  should  have  found  had 
I  visited  a  manufacturers'  association  or  attended  a 
meeting  of  an  employers'  association.  They  were  not 
politicians  —  they  were  business  men.  They  ran  the 
government  of  the  cities  in  the  way  business  men  would 
run  private  corporations.  They  dealt  with  employees 
much  on  the  same  basis,  and  the  workingmen  had  no 
appeal.  If  the  men  have  a  grievance,  they  must  do  the 
same  as  the  employees  of  a  private  corporation.  They 
must  organize  and  strike. 

But  in  this  country,  with  universal  suffrage,  the  work- 
ingman  in  public  employment  does  not  need  to  strike. 
He  forms  a  clique  and  goes  in  with  the  politicians.  He 


UNIONS   OF   PUBLIC   EMPLOYEES  115 

has  the  suffrage.  We  cannot  get  away  from  organiza- 
tion. These  employees  will  organize,  in  one  way  or 
another.  The  real  solution  is,  not  to  try  to  destroy 
the  organizations  of  public  servants,  but  to  give  them 
official  recognition,  to  give  them  a  part  in  the  adminis- 
tration of  the  department,  and  then  to  hold  them  to 
that  responsibility. 

Another  example:  British  administration,  as  I  have 
said,  has  been  free  of  political  influence  on  the  part  of 
employees.  But  in  the  past  eight  or  ten  years  the  wage- 
earners  of  England  have  been  taking  an  active  part  in 
politics.  They  have  elected  wage-earners  to  the  town 
councils  and  to  Parliament.  England  is  just  beginning 
to  have  that  clash  of  interests  in  city  and  national 
government  with  which  we  have  been  familiar  for  half 
a  century  or  more.  Hitherto,  it  has  been  a  simple 
matter,  with  only  the  employers  elected,  to  have  business- 
like administration  in  cities.  But,  since  the  trade  unions 
and  the  employers  are  together  trying  to  operate  the 
government,  their  town  councils  are  becoming  conven- 
tions for  class  struggle  instead  of  harmonious  boards  of 
business  directors.  They  are  beginning  to  have  the 
same  inefficiency  that  we  are  familiar  with. 

But  I  found  one  city,  Manchester,  where,  in  the 
municipal  tramways  department,  the  management 
has  changed  the  policy  of  class  struggle.  Instead  of 
undermining  and  displacing  the  union,  it  has  recognized 
the  union  of  tramway  employees.  It  has  made  the 
union  a  branch  of  the  administration.  It  takes  up  with 
the  officers  all  questions  of  wages,  hours  and  discipline. 
These  are  settled  by  trade  agreement  and  arbitration. 
The  general  manager  tells  me  of  the  great  advantage 
gained.  Formerly  a  town  councillor  would  approach 


n6  LABOR  AND  ADMINISTRATION 

the  manager,  asking  for  the  appointment  of  a  certain 
man,  or  an  advance  in  wages  for  another  or  less  severe 
discipline  for  another,  —  for  it  is  not  true  that  city 
government  in  England  is  free  from  political  or  personal 
favoritism.  The  manager  could  not  know  whether 
the  alderman's  request  had  merit  in  it  or  not.  But, 
now,  when  a  claim  comes  from  the  union,  he  knows  that 
it  is  something  real,  for  it  comes  from  all  the  men.  He 
takes  it  up  with  the  union  and  settles  it.  The  alderman 
has  lost  his  opportunity. 

So  it  is  when  modern  democracy  comes  forward  to 
operate  public  undertakings.  The  employees  have  polit- 
ical influence.  This  is  a  serious  menace  to  good  admin- 
istration, unless  the  organizations  that  inevitably  spring 
up  are  given  official  recognition  and  made  a  branch  of 
the  administration. 

There  is  another  side  of  the  question.  While  it  is 
important  that  these  organizations  should  be  encouraged 
and  recognized,  it  is  also  important  that  they  should 
not  dominate.  No  class  of  people  can  be  trusted  with 
absolute  power.  The  best  of  people  see  their  own  in- 
terests more  clearly  than  they  see  the  interests  of  others. 
People  become  broadminded  by  coming  against  others 
who  are  as  powerful  as  they  are. 

The  British  unions  have  had  an  experience.  An  or- 
ganization known  as  the  Municipal  Employees'  Asso- 
ciation had  brought  in  thousands  of  public  servants, 
like  nurses  and  common  laborers,  who  had  never  before 
had  a  union.  Its  platform  read :  "  No  strikes,  but  to 
operate  through  the  ballot  box."  This  was  well  enough 
for  the  unorganized  workers.  The  association  was 
admitted  to  the  town  councils  of  labor  unions  and  to  the 
national  Trades  Union  Congress.  It  grew  rapidly  and 


UNIONS  OF  PUBLIC   EMPLOYEES  117 

began  to  take  in  employees  who  were  eligible  to  existing 
organizations. .  It  set  up  its  motto  of  an  industrial 
union  — "  All  Municipal  Workers  in  One  Society." 
It  began  to  encroach  on  other  unions.  It  took  away 
their  members,  because  it  could  get  better  wages  for 
them  through  politics  than  through  strikes.  But  how 
was  it  doing  this  ?  It  was  building  itself  up  on  the  labor 
vote  of  the  very  unions  which  it  was  destroying.  The 
others  protested,  and  the  Trades  Union  Congress,  by  a 
vote  almost  unanimous,  adopted  the  following  resolution : 
"  That  any  method  of  organization  which  seeks  to  divide 
workmen  employed  by  public  authorities  or  private  em- 
ployers from  their  fellows  in  the  same  occupations 
employed  by  private  firms  is  detrimental  to  the  best 
interests  of  Trade  Unionism,  and  that  the  Parliamentary 
Committee  use  its  best  endeavors  to  prevent  the  spread 
of  such  methods  of  organization."  1 

The  conclusion  is  this :  if  municipal  or  public  em- 
ployees secure  for  themselves  better  wages  and  better 
conditions  than  the  best  wages  and  conditions  in  outside 
employment,  then  they  separate  themselves  out  from  the 
labor  movement  and  become  a  privileged  class.  They 
cease  to  belong  to  the  labor  unions,  because  they  depend, 
not  upon  labor  organization,  but  upon  politics.  It 
is  political  influence  which  they  hold  as  a  club  over 
legislative  officials,  and  not  the  labor  organization  formed 
to  lift  up  labor  as  a  whole.  If  municipal  or  public  em- 
ployees secure  special  privileges  and  are  advanced  be- 
yond the  same  class  of  labor  in  private  employment, 
they  lose  their  interest  and  their  willingness  to  pay  dues 
and  to  support  the  organization  of  labor  in  general. 
The  British  trade  unions  have  hit  upon  the  proper  rule, 

1  Proceedings,  Trades  Union  Congress,  1906,  pp.  164,  167. 


n8  LABOR  AND  ADMINISTRATION 

that  the  wages  and  conditions  of  the  employees  of  pri- 
vate concerns  and  the  wages  and  hours  of  public  em- 
ployees shall  rise  and  fall  together.  The  trade  union 
scale,  in  the  case  of  organized  labor,  and  the  scale  paid 
by  the  best  class  of  employers  where  there  is  no  union, 
should  be  the  same  as  that  paid  in  public  employment. 
That  is  to  say,  the  trade  unions  of  England  have  taken 
the  ground  that  there  should  be  no  special  privileges 
given  to  public  employees  ;  that  if  they  want  their  wages 
raised  and  their  hours  reduced,  they  must  join  the  gen- 
eral labor  movement  and  help  to  get  wages  increased 
and  hours  reduced  for  labor  in  general ;  that  they  may 
reasonably  expect  always  to  be  at  the  head  of  the  pro- 
cession and  to  have  the  wages  and  hours  which  the  best 
grades  of  private  employers  are  paying,  but  that  they 
shall  not  be  permitted  to  go  beyond  that  and  become  a 
privileged  class,  with  better  wages  than  those  the  em- 
ployees of  private  concerns  are  securing  on  the  outside. 
The  difficulty  is  this :  A  legislator,  a  town  councilor, 
an  alderman  is  elected  by  a  plurality  vote.  It  may 
take  only  a  few  votes  one  way  or  the  other  to  cause  his 
defeat.  A  compact  organization  of  employees  may 
effect  that  result.  Consequently,  an  organization  of 
municipal  employees  holds  a  club  over  the  alderman  that 
is  disproportionately  great.  It  is  not  the  proportion 
they  bear  to  the  total  vote,  but  the  proportion  they 
bear  to  the  margin  between  the  two  parties.  The  real 
trouble  is  that  there  is  no  method  of  referring  these 
demands  of  public  employees  to  the  common  sentiment 
of  labor  organizations  in  general.  They  are  allowed  in 
many  cases  to  operate  on  their  own  initiative  and  with 
the  tacit  sanction  of  other  labor  unions.  But  now  the 
Trades  Union  Congress,  in  self-protection,  prohibits 


UNIONS   OF  PUBLIC   EMPLOYEES  119 

these  organizations  of  public  employees  from  using  the 
labor  vote  as  a  means  of  getting  for  themselves  privi- 
leged positions  over  and  above  what  labor  in  private 
employment  has.  This  is  a  sound  principle  from  the 
standpoint  of  public  efficiency  and  public  administra- 
tion. It  applies  in  America,  as  in  England.  Then, 
when  public  employees  organize  and  affiliate  with  the 
unions  of  employees  in  private  service,  we  have  labor  or- 
ganizations on  a  rational  economic  basis,  going  forward 
and  improving  conditions  in  both  public  and  private 
employment. 


CHAPTER  IX 

RESTRICTIONS    BY   TRADE    UNIONS1 

SOME  employers  say,  "  We  should  have  no  objection  to 
trade  unions  if  they  would  organize  to  increase  produc- 
tion instead  of  restricting  production."  Economists  and 
critics  have  shown  that  unions,  by  their  restrictive 
policies,  stand  in  the  way  of  progress.  The  unions, 
in  deference  to  a  public  opinion  that  judges  measures 
mainly  by  their  effects  on  production,  defend  them- 
selves by  denying  that  their  policies  are  restrictive. 

But  their  arguments  are  indirect;  they  look  towards 
the  ultimate  effects  of  unions-,  and  not  to  their  imme- 
diate effects.  Ultimately,  the  unions  may  be  said  to 
increase  production  when  their  policies  force  employers 
to  adopt  labor-saving  devices;  but  this  is  plainly  an 
indirect  result  brought  about  by  the  employer  to  coun- 
teract the  direct  result  of  the  union.  Ultimately,  also, 
their  social  effects  may  contribute  to  social  progress 
by  shortening  the  hours  of  labor  and  maintaining  more 
expensive  standards  of  life ;  but  these,  again,  are  in- 
direct results,  preceded  by  policies  which,  so  far  as 
production  is  concerned,  are  essentially  restrictive.  In 
truth,  the  characteristic  policies  of  unions  imply  re- 
strictions of  some  kind  upon  employers. 

1  Outlook,  Nov.,  1906.  See  also  "Report  on  Regulation  and  Restric- 
tion of  Output,"  prepared  by  the  author  and  others  under  the  direction 
of  Carroll  D.  Wright,  and  published  as  Eleventh  Special  Report  of  the 
Commissioner  of  Labor,  1904.  (Government  Printing  Office.) 

120 


RESTRICTIONS   BY  TRADE   UNIONS         121 

The  success  of  unions  has  come  about  only  as  they 
have  abandoned  the  field  of  production  and  have  con- 
fined themselves  to  distribution.  It  is  with  the  distri- 
bution of  wealth  that  they  are  necessarily  concerned, 
and  the  irrepressible  conflict  of  capital  and  labor  is  found 
in  the  difference  between  production  and  distribution. 
In  modern  industry  it  is  the  employer  —  the  one  who 
assumes  the  risks  of  business  —  upon  whom  the  respon- 
sibility of  production  is  placed.  To  meet  this  responsi- 
bility, he  offers  inducements  to  the  other  factors  to  join 
with  him,  —  to  the  capitalist  or  land-owner  he  offers 
interest  or  rent,  to  patentees  he  offers  royalties,  to 
experts  and  managers  he  offers  salaries,  to  workmen  he 
offers  wages.  It  is  his  business  to  combine  these  factors 
and  to  afford  inducements  such  that  each  will  yield 
its  largest  and  best  contribution  to  the  joint  product. 
But  with  the  other  contributors  the  first  question  is 
the  return  they  will  get  from  their  productive  energies, 
and  a  trade  union  is  simply  a  combination  to  get  a 
larger  return. 

Such  a  combination,  in  the  nature  of  the  case,  can 
operate  only  by  means  of  obstacles  placed  in  the  way  of 
the  free  action  of  employers.  As  individuals  the  several 
contributors  can  secure  the  return  they  wish,  only  to  the 
extent  to  which  they  can  hold  back  in  the  bargain,  and 
this  is  limited  by  the  freedom  which  the  employer  has 
of  turning  from  one  to  another.  As  a  combination  they 
direct  their  efforts  towards  limiting  this  kind  of  freedom, 
and  this  is  the  primary  object  underlying  all  the  restric- 
tions of  a  trade  union.  The  aim  is  mutual  protection  — 
or  perhaps  joint  aggrandizement  —  and  the  methods 
are  restrictive  in  the  same  sense  that  a  protective  tariff 
on  imports  is  restrictive.  In  both  cases  some  of  the 


122  LABOR  AND  ADMINISTRATION 

arguments  advanced  may  be  fallacious,  such  as  the  argu- 
ment that  by  restricting  trade  you  increase  the  amount 
of  work  to  be  done. 

I  do  not  hold  that  protectionism  and  trade  unionism 
are  parallel  in  all  respects.  One  is  the  policy  of  govern- 
ment, supposed  to  stand  for  all  of  the  people ;  the  other 
is  the  policy  of  individuals  acting  for  themselves.  But 
even  here  it  is  conceivable  that  government  might  adopt 
this  policy  and  relieve  individuals  of  enforcing  it,  as 
government  has  already  done  in  the  case  of  factory 
protection  and  child  labor,  and  as  government  has  done 
in  Australasia  along  the  entire  line  of  trade  union  policy. 
The  essential  parallel  is  the  fact  that  both  lines  of 
industrial  philosophy  proceed  along  restrictions  on  free- 
dom of  trade  and  bargaining,  and  that  neither  is  primarily 
an  agency  for  the  production,  but  rather  an  agency  for 
the  distribution,  of  wealth.  If  they  increase  production, 
it  is  because  they  set  other  forces  at  work  to  overbalance 
their  restrictions. 

Consider  the  changes  necessary  in  the  character  of  a 
union  if  it  should  direct  its  energies  to  the  production 
of  wealth.  It  would  in  so  far  cease  to  be  a  trade  union, 
and  would  become  either  a  society  for  technical  educa- 
tion, or  an  association  for  sharing  profits,  or  a  coopera- 
tive association. 

It  might  be  well  for  unions  to  give  more  attention 
than  they  do  to  the  technical  or  trade  education  of  their 
members.  But,  apart  from  incidental  instruction  in 
their  trade  journals,  their  efforts  in  this  direction  are 
confined  almost  solely  to  securing  opportunity  for 
apprentices  to  learn  all  branches  of  their  trade.  And 
here,  strangely  enough,  it  is  only  by  way  of  restrictions 
the  most  onerous  to  employers  that  the  apprentices  are 


RESTRICTIONS   BY  TRADE   UNIONS          123 

granted  such  opportunities.  The  union  restricts  the 
number  of  apprentices  to  the  shop  and  restricts  the  ratio 
to  journeymen ;  it  requires  three,  four  or  five  years  of 
apprenticeship,  and  enjoins  the  journeymen  to  aid  and 
instruct  the  apprentice.  It  prohibits  the  employer 
from  keeping  the  apprentice  at  one  operation,  but  re- 
quires that  the  employer  shall  change  him  to  another 
machine,  say,  every  six  months.  The  object  is  two- 
fold :  the  number  of  apprentices  is  limited  in  order  that 
the  trade  may  not  be  overcrowded  and  wages  reduced; 
and  an  all-round  education  of  the  apprentice  is  stipulated 
in  order  that  the  union  man  may  become  a  better 
mechanic  than  the  non-union  man.  These  are  un- 
doubted restrictions  on  the  employer;  they  prevent 
him  from  specializing  his  workmen  and  adopting  that 
minute  division  of  labor  which  the  economists  set  forth 
as  a  fruitful  instrument  of  wealth-production.  But  it  is 
evident  that  they  are  necessary  to  the  existence  of  the 
union,  that  their  motive  is  self-protection,  and  that,  by 
way  of  a  method  immediately  restrictive,  their  ultimate 
result  is  to  raise  the  general  efficiency  of  the  union 
mechanics. 

As  regards  profit-sharing,  evidently  the  offer  must 
come  from  the  employers.  It  is  one  form  of  the  induce- 
ments which  they  offer  to  their  managers  and  workers 
to  engage  more  actively  in  the  production  of  wealth. 
It  scarcely  needs  an  association  of  the  workmen,  and,  if 
it  did,  such  an  association  would  not  be  a  trade  union. 

The  only  other  form  that  a  union  could  adopt  in 
order,  as  an  association,  to  promote  production  would 
be  that  of  a  cooperative  society  or  corporation.  In- 
deed, this  is  what  several  organized  trades  in  the  United 
States  have  done  at  one  time  or  another  in  their  history. 


i24  LABOR  AND  ADMINISTRATION 

The  experiments  have  either  failed  or  have  been  disasters 
if  they  succeeded.  When  the  union  takes  the  risks  and 
responsibilities  of  production,  it  becomes,  not  a  coopera- 
tor  with  the  employer,  but  a  competitor.  Herein  is 
failure.  If  it  succeeds,  then  it  raises  up  in  its  own 
ranks  an  element  interested  in  profits  rather  than  wages. 
This  element  becomes  exclusive,  treats  its  fellow-members 
as  employees,  hires  outsiders  if  it  can  get  them  cheaper, 
and,  sooner  or  later,  goes  over  to  the  other  employers 
or  is  expelled  by  such  remnant  of  the  union  as  survives. 
The  moulders  and  the  coopers  have  furnished  illustrious 
warnings  of  this  kind  to  unions  not  to  engage  in  produc- 
tion, with  its  motive  of  profits. 

By  painful  experiment,  or  by  the  experience  of  others, 
the  unions  have  generally  come  to  the  point  of  confining 
their  attention  to  wages,  —  that  is,  to  distribution, — 
leaving  to  employers  the  questions  of  production.  This 
may  be  unfortunate.  The  resulting  policies  may  seem 
unreasonable.  If  so,  it  is  because  industrial  conditions 
have  separated  those  interested  in  the  production  of 
wealth  from  those  interested  in  its  distribution.  The 
labor  union  is  a  protest  on  the  part  of  the  latter.  Its 
policies  are  necessarily  restrictive,  but  the  restrictions 
vary  in  extent,  partly  with  the  extent  to  which  the 
separation  has  been  carried,  partly  with  the  extent  to 
which  the  union  dominates.  Where  the  separation  has 
been  bridged  by  conciliation,  or  where  the  union  has 
been  weakened  or  suppressed,  the  restrictions  have  been 
lessened,  but  their  essential  restrictiveness  remains  in 
the  very  protective  nature  of  the  trade  union  itself. 

The  methods  of  unions  cannot  be  understood  except 
in  terms  of  conflict.  This  is  true  not  only  of  strikes,  but 
also  of  the  methods  used  to  retain  the  winnings  of 


RESTRICTIONS   BY  TRADE   UNIONS          125 

strikes.  The  conflict  continues  after  the  strike  is  won. 
Consequently.,  to  the  experienced  members,  more  impor- 
tant than  wages  is  the  preservation  of  their  union.  New 
and  inexperienced  unions  fall  in  pieces  after  a  strike  is 
won.  Their  members  have  a  juvenile  faith  in  promises. 
But  with  experience  they  learn  that  it  is  the  union  rather 
than  the  promises  that  they  must  rely  upon.  Take 
the  minimum  wage.  The  employer  agrees  to  pay  not 
less  than  a  certain  amount  by  the  day  or  hour.  But 
the  agreement  is  not  a  contract  in  law.  It  cannot  be 
enforced  in  court.  It  has  probably  been  made  under 
duress,  —  that  is,  under  a  strike  or  threat  of  a  strike. 
Furthermore,  it  applies  only  to  the  union  members.  If 
the  employer  agrees  to  pay  it  to  non-members,  and  if 
he  lives  up  to  his  agreement,  the  state  of  conflict  ceases 
and  the  union  need  go  no  further.  This  is  the  case  with 
the  railroad  brotherhoods  —  the  engineers,  firemen, 
conductors  and  trainmen.  They  deal  with  corporations 
conducted  like  governments.  Their  scale  of  wages  is 
like  a  legislative  enactment  fixing  a  uniform  rate  of 
pay  for  government  employees  over  a  vast  area.  The 
scale  is  issued  as  a  general  order  from  the  highest  author- 
ity to  all  subordinates  who  hire  and  discharge  these 
classes  of  employees.  The  positions  themselves  are 
well  defined  —  there  is  but  one  man,  and  no  chance  to 
divide  up  his  work  among  a  set  of  helpers.  The  super- 
intendent is  not  expected  to  pay  less  or  to  pay  more, 
nor  to  change  his  force  in  order  to  get  cheaper  help. 
Years  of  experience  have  shown  the  railway  brotherhoods 
that 'they  can  rely  upon  a  promise  so  far  removed  as  this 
one  is  from  the  ordinary  treatment  of  labor  as  a  com- 
modity fluctuating  upon  demand  and  supply.  A  suc- 
cessful strike  or  threat  is  as  good  as  a  contract.  Conse- 


126  LABOR  AND  ADMINISTRATION 

quently  the  brotherhoods  do  not  go  further  and  demand 
that  irritating  restriction  so  naturally  resented  by 
employers,  the  "  closed  shop." 

But  take  the  building  trades.  Here  the  cardinal 
principle  of  unionism  is  the  refusal  to  work  with  non- 
union men.  The  employer  is  restricted  to  those  who 
are  willing  to  join  the  union  and  whom  the  union  is 
willing  to  admit.  Waiving  questions  of  law  and  ethics, 
look  at  the  economics.  Here  is  an  industry  decentral- 
ized to  the  furthest  extent.  A  general  contractor 
agrees  to  put  up  a  building.  He  lets  out  most  of  the 
work  in  ten  to  thirty  subcontracts  by  competition  to 
the  lowest  bidders.  These  subcontractors  have  little 
or  no  capital ;  their  work  is  narrowly  specialized ;  labor 
is  their  largest  item  of  cost ;  they  tend  to  become  simply 
brokers  on  the  labor  market;  their  jobs  last  for  but  a 
few  days  or  weeks ;  they  hire  men  by  the  hour  and  lay 
them  off  on  the  half-hour,  according  to  the  weather  or 
the  supply  of  material  or  the  progress  of  other  trades. 
Here  is  the  ideal  labor  market  from  the  standpoint  of 
demand  and  supply.  It  is  like  that  of  the  bulls  and 
bears  in  the  wheat-pit,  while  railroad  employment  is 
like  the  market  for  postage-stamps.  It  is  not  surprising 
that  building  mechanics  are  extreme  and  peremptory 
in  their  restrictions.  Their  minimum  wage  would  be 
impossible  if  labor  could  be  thrown  in  and  out  of  this 
market  at  the  will  of  the  struggling  brokers.  Hence 
their  insistence  on  the  one  great  restriction  that  supports 
all  others  —  the  closed  shop.  Their  members  they  can 
control  —  they  can  fine,  suspend  or  expel  the  one  who 
works  for  less  than  the  minimum.  But  if  the  contractor 
is  free  to  employ  the  expelled  members,  their  discipline 
is  gone.  The  contractor  who  can  import  and  hire  out- 


RESTRICTIONS   BY  TRADE   UNIONS          127 

siders  can  get  the~contracts,  and  the  others  must  do  the 
same  or  lose  the  business.  Sentiment  is  excluded,  and 
the  benevolent  contractor  must  come  down  toward  the 
level  of  the  lowest.  Under  these  conditions  the  closed- 
shop  restriction  is  the  necessary  protection  of  the 
minimum  wage. 

Take  machinery  and  the  division  of  labor.  The  super- 
ficial effects  of  its  introduction  are  well  known.  It 
increases  the  production  of  goods  and  decreases  the  cost. 
But  in  this  statement  there  are  hidden  two  entirely 
opposite  effects.  One  is  the  increase  in  the  output  of 
the  workman,  the  other  is  the  substitution  of  cheap 
labor.  Perhaps  no  mechanical  invention  has  worked  a 
greater  revolution  than  the  invention  of  the  linotype 
in  the  printing  trade.  It  has  increased  the  speed  of  the 
operator  at  least  fivefold.  But  it  made  possible  a  three 
months'  apprenticeship  of  girls  in  place  of  a  three  years' 
apprenticeship  of  boys.  Yet  this  substitution  did  not 
occur  in  newspaper  offices,  because  the  Typographical 
Union  was  able  to  prevent  the  introduction  of  women. 
Consequently  men  were  transferred  to  the  machine, 
reducing  their  hours  of  labor  from  ten  or  twelve  to  seven 
or  eight  per  day  and  increasing  their  wages.  At  the 
same  time  the  cost  of  composition  was  reduced  80 
per  cent,  and  the  size  of  papers  was  increased  and  their 
price  was  reduced.  The  benefit  of  the  invention  was 
thus  distributed  among  the  four  parties  to  the  trans- 
action —  to  the  inventor  in  royalties,  to  the  publisher 
in  profits,  to  the  public  in  prices,  to  the  printer  in  wages. 
Thus  the  machine  came  in  on  its  merits  as  a  means  of 
increasing  speed  and  not  as  a  means  of  substituting  cheap 
labor. 

The    cigar-making    machines    are    different.     They 


128  LABOR  AND  ADMINISTRATION 

increase  the  rate  of  output  not  more  than  50  per  cent, 
and  there  are  good  cigar-makers  whose  speed  on  hand 
work  is  equal  to  that  of  the  machine.  The  profit  on 
these  machines  has  come  from  the  substitution  of  girls 
at  $7  for  men  at  $18.  These  machines  come  into  the 
trade,  not  as  labor-saving,  but  as  wage-saving,  devices. 
The  benefit  goes  to  the  inventor,  the  manufacturer  and 
the  consumer,  but  not  to  the  workman.  The  Cigar- 
makers'  Union  has  resisted  them,  and,  though  permitting 
its  members  to  work  on  them,  refuses  to  grant  the  union 
label  to  manufacturers  using  them.  It  may  be  said 
that  the  union  made  a  mistake  and  should  have  welcomed 
these  inventions  as  the  printers  welcomed  the  linotype. 
But  there  is  a  difference  between  welcoming  a  machine 
that  lightens  your  work  and  welcoming  one  that  takes 
your  job.  And  the  public,  which,  in  its  desire  for  cheap 
products,  sees  no  distinction  between  an  invention  that 
shares  its  benefits  with  the  workmen  and  one  that  makes 
their  daughters  their  own  competitors,  is  not  a  disin- 
terested critic  of  the  workman's  restrictions  on  machin- 
ery. The  linotype  in  newspaper  offices  is  an  exception 
to  the  rule.  Skilled  workmen  in  general  have  seen 
machinery  and  division  of  labor  make  way  for  girls  and 
immigrants.  The  union  opposition  has  been  a  losing 
fight.  They  have  the  consolation  of  cheaper  products, 
but  this  they  cannot  realize  if  they  are  displaced  by 
cheaper  labor. 

So  much  for  the  introduction  of  machinery.  When 
once  introduced,  instances  may  be  found  where  unions 
stand  in  the  way  of  its  unrestricted  output.  These 
restrictions  apply,  however,  to  machines  whose  speed 
depends  mainly  on  the  work  of  the  operator,  and  not  to 
automatic  machines.  Thus  the  machinists'  union  holds 


RESTRICTIONS   BY  TRADE   UNIONS         129 

to  the  one-man-one-machine  tradition  of  the  craft,  but 
it  interprets  the  rule  to  apply  only  where  the  machine 
requires  constant  attention.  The  disagreement  with 
the  employer  grows  out  of  the  fact  that  this  line  of 
division  is  indefinite,  and  is  continually  moving  forward 
as  machines  become  more  automatic.  The  bituminous 
mine  workers  hedge  the  undercutting  machines  about 
with  many  rules,  limiting  the  number  of  "  runs  "  in  a 
day,  limiting  the  number  of  hours  per  day,  increasing 
the  number  of  men  to  the  machine,  and  reducing  the 
differential  between  the  price  per  ton  for  pick  mining 
and  the  price  for  machine  mining.  These  rules  tend 
to  transfer  much  of  the  benefit  of  machinery  to  the  wage- 
earner,  giving  him  more  wages  for  less  work.  They  also 
restrict  the  introduction  of  the  machines  by  lessening 
the  profits  on  them,  but  this  must  necessarily  occur  to 
a  certain  extent  in  any  case  if  the  gain  of  a  machine  is 
shared  with  the  wage-earner.  Some  of  the  miners' 
restrictions  are  unjustifiable,  because  they  go  further 
than  needed  for  this  purpose. 

Doubtless  the  most  familiar  and  widespread  criticism 
of  unions  is  the  one  that  they  hold  back  the  ambitious 
and  energetic  workman  and  prevent  him  from  making 
the  most  of  his  abilities.  I  have  examined  a  number  of 
cases  where  this  charge  is  made,  and  have  usually  found 
that  it  is  one  half  of  the  truth.  The  other  half  is  in  the 
circumstances  of  modern  industry  which  take  away 
from  the  more  energetic  workman  the  fruits  of  his  energy 
and  drive  the  slower  workman  beyond  the  point  of 
endurance.  In  the  first  place,  the  criticism  is  seldom 
made  by  employers  whose  emphasis  is  on  the  quality 
of  their  product.  Such  employers  are  sometimes  found 
to  encourage  the  union,  and  even  openly  to  agree  with 

E 


i3o  LABOR  AND   ADMINISTRATION 

it,  in  limiting  the  amount  of  work  to  be  done  in  a  given 
time.  If  they  can  succeed  in  this,  they  can  increase  the 
expenses  of  their  competitors  who  emphasize  quantity 
instead  of  quality.  In  the  building  trades  the  "  legit- 
imate "  builder  often  looks  with  favor  on  the  union 
rules  which  restrict  the  speed  of  workmen  employed  by 
the  "  speculative "  builder.  The  limitation  seldom 
affects  his  own  work,  because  men  cannot  do  good  work 
if  they  hurry.  A  similar  division  between  employers  is 
found  in  the  clothing  trade,  in  pottery  and  in  almost 
every  trade  where  the  quality  of  the  work  depends  on 
the  care  of  the  workman  and  not  on  automatic  machin- 
ery. Even  in  non-union  establishments  the  same  is 
true.  The  manufacturer  of  a  widely  advertised  cigar 
prohibits  his  girls  from  earning  more  than  seven  dollars 
a  week,  when  the  best  of  them  could  earn  ten  or  more  at 
the  piece  rates  paid.  In  these  cases  the  restriction  on 
output  is  necessary  if  the  manufacturer  cares  to  uphold 
the  reputation  of  his  product. 

The  illustration  shows  the  double  meaning  of  terms 
when  we  speak  of  the  "  ambitious,"  the  "  capable," 
or  the  "  skilful  "  workman.  "  Ability  "  may  mean 
ability  to  reach  a  high  speed  and  thus  turn  out  a  great 
quantity  of  product,  or  it  may  mean  ability  to  improve 
and  to  maintain  a  good  quality  of  work.  Modern 
industry,  with  its  world  market,  its  stress  of  competition 
and  its  lack  of  responsibility  to  the  consumer,  has  run 
to  cheap  products,  low  costs  and  enormous  speed  of 
workmanship.  A  partial  reaction  is  occurring,  as  seen 
in  laws  against  adulteration,  and  in  the  large  develop- 
ment of  proprietary  goods  and  advertised  trade-marks, 
and  there  is  a  sentimental  reaction  in  the  arts  and  crafts 
movement.  This  is  from  the  standpoint  of  the  consumer 


RESTRICTIONS   BY  TRADE   UNIONS         131 

and  the  manufacturer.  From  the  standpoint  of  the 
workman  the  reaction  appears  in  the  effort  to  restrict 
speed. 

It  is  minute  division  of  labor  and  extreme  specializa- 
tion that  have  brought  forth  this  high  speed  of  modern 
industry.  The  skilled  mechanic  who  turns  from  one 
operation  to  another  may  be  competent,  but  he  is  not 
expeditious.  When  his  work  is  split  'up  and  specialized, 
two  important  changes  occur.  Wages  are  changed  from 
a  time  basis  to  a  piece  basis,  and  the  foreman  can  inspect 
the  quality  of  output.  Piece  rates  intensify  the  work- 
man's motive  to  exertion  by  keeping  the  reward  always 
in  sight,  and  employers  are  surprised  to  find  that  the 
output  is  increased  far  beyond  what  they  thought  was 
possible.  The  men's  earnings  are  often  doubled  and 
trebled ;  and  the  employer,  ignorant  of  industrial 
psychology,  concludes  that  they  had  been  cheating  him. 
He  "  cuts  "  the  piece  rate.  But  the  men  exert  them- 
selves still  more,  and  then  comes  another  cut,  and  so 
on.  In  a  large  establishment,  with  twenty  thousand  or 
more  piece  rates,  the  workmen  learned  from  a  remark  of 
the  proprietor  and  the  acts  of  the  foreman  that,  no 
matter  how  much  they  exerted  themselves,  they  could 
not  expect  to  earn  more  than  $2.65  a  day.  In  one 
department  of  seventy  men  there  were  four  ambitious 
ones  who  paid  no  heed  to  the  hint,  but  strove  to  increase 
their  earnings  above  that  limit.  The  foreman  used  them 
as  a  gauge  on  the  others,  and  when  he  found  a  piece  on 
which  their  earnings  were  excessive  he  cut  the  rate  for 
all.  At  last  the  others  organized  a  union,  compelled 
these  four  to  join,  and  adopted  a  rule  that  no  man 
should  earn  more  than  $3  a  day.  All  of  them  began 
to  earn  about  $2.98  a  day.  Then  the  employer  cried 


i32  LABOR  AND  ADMINISTRATION 

out  that  the  union  restricted  output,  which  was  one- 
half  the  truth,  for  they  had  both  increased  the  output 
and  restricted  it.  The  restriction  began  with  the 
employer. 

This  is  not  an  exceptional  case.  It  is  an  old  story, 
and  ought  not  to  need  repetition;  but  I  have  heard  a 
great  employer  deny,  in  the  presence  of  a  large  audience, 
that  the  piece  rates  in  his  establishment  had  been  cut, 
when  I  knew  of  my  own  observation  that  it  had  been 
done  under  circumstances  similar  to  the  above  —  so 
ignorant  and  far  removed  from  their  workmen  are  the 
heads  of  great  corporations.  I  am  not  defending 
restriction  of  output,  much  less  denying  it;  I  am  ex- 
plaining it.  Unions  are  often  compelled  to  resort  to 
it,  and  in  some  cases,  like  the  one  above,  they  are  or- 
ganized for  that  purpose  alone.  The  policy  is  forced 
on  them  in  self-protection,  at  first  against  their  wishes, 
but  afterwards  accepted  as  something  so  self-evident 
that  they  do  not  recognize  it  as  a  restriction.  As  long 
as  industry  is  conducted  on  prevailing  standards,  unions 
will  spring  up,  will  restrict  or  regulate  output,  will  be 
"  smashed,"  and  will  again  spring  up.  The  prevailing 
standards  really  crush  ambition,  except  for  the  very 
few  who  can  become  foremen,  by  holding  up  a  reward 
and  then  snatching  it  away  as  soon  as  the  workman  is 
able  to  reach  it.  Instead  of  appealing  to  ambition,  such 
standards  rely  on  coercion;  and  employers  are  prone 
to  mistake  the  feverish  energy  of  unorganized  workmen 
for  loyalty  when  it  is  really  fear.  In  times  of  prosperity 
the  speed  of  both  union  and  non-union  workmen  is  less 
than  in  periods  of  depression.  The  whip  of  unemploy- 
ment rather  than  the  hope  of  reward  is  the  inducement 
to  ambition  offered  by  business  methods. 


RESTRICTIONS   BY  TRADE   UNIONS         133 

There  is  another  fact  of  some  significance  regarding 
restrictions.  Nearly  all  of  the  typographical  unions 
have  removed  restrictions  on  the  output  of  the  linotype 
machine,  but  there  remain  a  few  "  locals  "  which  limit 
their  members  to  one-half  or  two-thirds  of  the  un- 
restricted speed.  In  visiting  some  of  the  restricted 
newspaper  offices  I  was  surprised  to  see  gray-haired  men. 
This  suggested  a  comparison  of  ages,  and  the  returns 
from  a  dozen  offices  showed  that  in  the  unrestricted 
offices  only  2  per  cent  of  the  operators  were  over  fifty 
years  of  age,  while  in  the  restricted  offices  15  to  20  per 
cent  were  over  fifty.  The  Government  Printing  Office, 
under  civil  service  rules,  shows  22  per  cent  of  the  em- 
ployees over  fifty,  and  2  per  cent  over  seventy  years 
of  age,  —  a  proportion  about  the  same  as  that  of  the 
male  population  at  large.  This  grievance  of  premature 
old  age  arises  from  every  industry  conducted  on  modern 
principles.  Wage-earners  are  at  their  highest  mark  of 
earning  ability  between  the  ages  of  twenty  and  forty. 
Above  the  latter  age,  when  the  professional  or  business 
man  is  just  entering  his  prime,  the  wage-earner  is  declin- 
ing and  soon  is  discharged  or  transferred  to  lighter  and 
less  remunerative  work.  He  must  give  way  to  a  younger 
man  who  can  keep  up  with  the  pace.  But  trade  union 
and  civil  service  restrictions  protect  him.  Freed  from 
overexertion  in  his  earlier  years,  he  holds  on  in  the 
advanced  years.  These  facts  will  be  viewed  differently 
according  as  our  standard  is  production  or  distribution. 
May  it  not  be  that  some  future  generation  will  look 
back  with  gratitude  on  the  heresy  that  justifies 
restriction  of  output? 

Some  of  the  foregoing  restrictions  are  supported  by 
irritating  shop  rules  which  interfere  with  the  employer's 


134  LABOR  AND   ADMINISTRATION 

efforts  to  improve  his  plant  and  management.  In  the 
interest  of  industrial  progress  and  the  increase  of  pro- 
duction, the  employer  should  have  a  free  hand  in  these 
particulars.  But  there  is  one  form  of  restriction  that 
is  free  from  this  objection;  namely,  restriction  on  the 
hours  of  labor  per  day.  Here  is  the  logical  line  of  com- 
promise. The  bricklayers  have  recognized  this  prin- 
ciple perhaps  more  than  any  other  American  union,  for 
they  have  yielded  to  the  employer  on  nearly  all  points 
of  management  and  have  concentrated  their  demands 
on  high  rates  for  short  hours.  Compared  with  the 
London  bricklayer  at  twenty  cents  an  hour  for  nine 
hours,  the  New  York  bricklayer  at  seventy  cents  for 
eight  hours  is  the  cheaper  workman ;  for  not  only  is  his 
exertion  much  greater,  but  his  employer  has  specialized 
his  work,  has  arranged  an  unremittent  flow  of  brick  and 
mortar,  and  lays  him  off  at  any  half-hour.  Not  a  min- 
ute of  his  precious  time  is  wasted,  nor  a  stroke  of  his  arm 
permitted  to  lag.  What  is  true  of  the  bricklayers  is 
true  approximately  of  most  American  unions,  compared 
at  least  with  their  European  brothers.  By  restricting 
the  hours  the  employer  gets  unrestricted  output  per 
hour. 


CHAPTER  X 


UNIONS   AND   EFFICIENCY 


IN  a  recent  article  one  of  the  foremost  efficiency  engi- 
neers of  the  country,  referring  to  the  adoption  of  the 
system  of  scientific  management  in  industrial  establish- 
ments, predicts  that  it  will  mean  "  for  the  employers 
and  the  workmen  who  adopt  it,  and  particularly  those 
who  adopt  it  first,  the  elimination  of  almost  all  causes 
for  dispute  and  disagreement  between  them." 

The  spokesmen  of  organized  labor  seem  to  take  a 
different  view  of  the  matter.  Their  attitude  is  partly 
one  of  hostility,  partly  of  suspicion.  Are  the  principles 
of  trade  unionism  and  scientific  management  in  irre- 
pressible conflict?  Can  one  survive  only  by  crushing 
the  other,  or  is  their  opposition  an  accident  due  to 
imperfections  which  may  be  corrected,  so  that  both 
can  flourish  together? 

It  is  sometimes  argued  that  trade  unions  would  be  of 
greater  advantage  to  workingmen  if  they  would  make  the 
production  of  wealth  their  main  object  and  abandon 
altogether  their  restrictive  policies.  But  I  consider  that 
production  is  the  business  of  the  employer,  and  that,  if 
a  union  turns  itself  mainly  to  production,  it  can  do  so 
only  by  becoming  its  own  employer ;  that  is,  by  becom- 
ing a  cooperative  society. 

As  a  matter  of  fact,  modern  trade  unionism  is"  a  sur- 
vival of  all  kinds  of  experiments  in  organization,  includ- 

1  American  Economic  Review,  Sept.,  1911. 
135 


136  LABOR  AND  ADMINISTRATION 

ing  cooperation,  politics  and  joint  membership  of 
employers  and  workmen;  and  it  has  survived  only  to 
the  extent  that  it  has  chosen  to  enforce  policies  that 
restrict  the  employer.  Labor  has  never  been  able  to 
compete  with  the  employer,  as  cooperation  requires. 
Those  cooperative  societies  which  have  succeeded,  like 
the  coopers  and  moulders,  have  done  so  by  becoming 
employers,  and  are  now  simply  successful  corporations 
employing  hired  labor.  Those  which  have  failed  did  so 
after  leaving  around  them  the  wrecks  of  other  wage- 
earners  hired  by  regular  employers ;  for  they  kept  their 
heads  above  water  only  by  generously  failing  to  pay 
themselves  full  wages  in  order  that  they  might  cut 
prices,  and  thereby  they  weakened  the  ability  of  compet- 
ing employers  to  pay  full  wages.  Thus  a  labor  organ- 
ization that  devotes  itself  to  production  travels  a  disas- 
trous circle.  It  fails,  whether  it  succeeds  or  fails. 

Conscious  of  the  futility  of  trying  to  cope  with  the 
employer  on  his  own  ground,  modern  trade  unionism 
contents  itself  with  trying  to  tie  his  hands.  Its  policies 
are  necessarily  restrictive.  If  it  cannot  prevent  the 
employer  from  doing  as  he  pleases  at  some  point  or  other, 
it  is  something  besides  a  trade  union.  The  real  questions 
are,  whether  its  restrictions  are  injurious  or  beneficial? 
to  whom  ?  and  who  is  to  decide  ? 

Again,  it  is  sometimes  charged  that  unions  are  or- 
ganized mainly  to  foment  trouble,  especially  strikes. 
The  fact  is,  that  unions  came  into  existence  after  periods 
of  strikes,  and  were  thought  by  workmen  to  be  the  means 
of  getting  their  demands  without  strikes.  The  modern 
idea  of  a  permanent  trade  union  began  with  the  ideas  of 
negotiation,  arbitration  and  trade  agreements,  with 
their  permanent  joint  boards  and  periodic  joint  conven- 


UNIONS   AND   EFFICIENCY  137 

tions  for  the  settlement  of  differences.  Experience 
had  shown  that  it  was  not  difficult  to  win  strikes  in 
periods  of  prosperity,  but  it  was  impossible  to  retain 
the  fruits.  Consequently,  to  the  experienced  unionist, 
the  preservation  of  his  union  has  come  to  be  more  impor- 
tant than  winning  strikes.1  And  nearly  all  of  the 
restrictive  policies  of  which  complaint  is  made  spring 
from  the  effort  to  preserve  the  union.  The  irrepressible 
conflict,  if  there  is  one,  between  unionism  and  scientific 
management  will  be  found  at  the  points  where  man- 
agement weakens  the  solidarity  of  unionism.  Other 
points  of  conflict  are  incidental.  These  are  irrepressible. 
The  real  question  here  is  this  :  Can  scientific  management 
deal  scientifically  with  organizations  as  well  as  indi- 
viduals? Is  there  a  science  of  industrial  organization 
as  well  as  a  science  of  engineering  details  ? 

The  history  of  the  stove  moulders  and  stove  foundry- 
men  will  assist  us.2  Long  before  management  became 
a  science  the  stove  foundrymen  had  practised  its  prin- 
ciples. For  forty  years,  prior  to  1890,  they  were  work- 
ing out  the  problem  of  efficiency  details.  Competition 
forced  them  to  learn  by  experiment  and  to  spread  by 
imitation  what  science  learns  by  observation  and  meas- 
urement, and  spreads  by  propaganda.  They  learned 
to  subdivide  labor  so  that  a  three-dollar  man  would  be 
kept  on  three-dollar  work  and  never  be  permitted  to 
turn  his  hand  to  what  a  dollar  man  could  do.  They 
had,  of  course,  some  crudities  which  science  would 

1  This  conviction  first  became  dominant  in  labor  organizations  in  the 
decade  of  the  fifties,  both  in  England  and  the  United  States.     See  "Docu- 
mentary History  of  American  Industrial  Society,"  Vols.  VII  and  VIII, 
period  of  1840-1860. 

2  See  Bulletin  of  Labor,  No.  62,  Jan.,  1906,  U.  S.  Bureau  of  Labor, 
article  by  Commons  and  Frey  on  "Conciliation  in  the  Stove  Industry." 


138  LABOR  AND  ADMINISTRATION 

eliminate,  such  as  piece-rates  instead  of  premiums,  prizes 
and  bonuses;  but  these  differences  I  consider  unessen- 
tial, for  they  agreed  on  the  essential  thing  of  playing 
on  the  motives  of  individual  workmen  to  stimulate 
output,  regardless  of  the  effect  on  other  workmen  and 
other  employers.  The  consequence  was  that  for  forty 
years  every  step  towards  greater  efficiency  and  greater 
output  per  man  brought  a  cut  in  prices  of  stoves ;  and 
every  cut  in  the  price  of  stoves  took  away  by  so  much 
the  employers'  reward  for  enterprise;  every  loss  of 
profit  forced  employers  to  cut  the  piece-rates  of  wages ; 
every  cut  in  piece-rates  forced  the  wage-earners  to 
greater  output  for  the  same  earnings ;  and  so  on,  around 
the  vicious  circle  of  futile  efficiency. 

Now,  that  circle  is  very  familiar  to  wage-earners  in 
every  business.  It  is  so  familiar  that  they  take  it  as  a 
matter  of  course,  and  therefore  usually  fail  to  state  their 
case  against  efficiency,  or  their  case  for  restrictions; 
just  as  it  might  not  occur  to  them  to  explain  an  aeroplane 
disaster  by  the  attraction  of  gravitation.  Even  where 
monopoly  or  special  privilege  prevails,  and  competition 
does  not  force  friendly  employers  into  the  ranks  of 
hostile  employers,  the  thing  that  is  equally  plain  is  the 
infinite  capacity  of  stocks  and  bonds  to  absorb  every 
gain  from  the  efficiency  of  labor.  The  sugar  trust,  the 
steel  trust  and  other  trusts  that  might  be  mentioned  are 
not  hopeful  inducements  to  wage-earners  to  take  an 
interest  in  scientific  increase  of  output.  Fear  or  greed 
may  coerce  or  induce  exertion,  but  somewhere  along  the 
road  ahead  of  them,  they  see  the  bonus  foreman,  the 
profit-sharing  superintendent  and  the  absentee  stock- 
holder ready  to  relieve  them  of  their  increased  product. 

As  regards  the  stove  moulders,  they  tried  cooperation 


UNIONS   AND   EFFICIENCY  139 

as  early  as  1847  an<^  often  thereafter,  in  the  vain  endeavor 
to  avoid  strikes.  Along  with  this  they  became  the  most 
persistently  violent  and  restrictive  of  all  labor  organiza- 
tions, or  rather  of  all  attempts  to  form  a  permanent 
organization.  To  prevent  employers  from  cutting  piece- 
rates  and  in  order  to  build  up  a  compact  union,  they 
established  the  rules  that  apprentices  should  be  limited ; 
that  no  man  should  be  allowed  to  work  with  the  aid  of 
helpers  ;  that  no  man  should  be  allowed  to  earn  more  than 
a  fixed  wage  set  by  the  union.  And  then,  to  enforce  these 
rules,  they  fined  and  expelled  the  violaters  and  established 
and  violently  enforced  the  other  rule  that  union  men  should 
not  be  allowed  to  work  with  non-union  men.  Finally, 
this  anarchy  of  individual  efficiency  brought  its  correc- 
tion in  the  form  of  a  representative  government  in  con- 
trol of  the  industry.  This  is  the  trade  agreement,  or 
joint  conference  system,  that  has  preserved  industrial 
peace  in  the  stove  foundry  business  for  over  twenty  years. 
It  governs  the  employer  as  firmly  as  the  employee.  The 
employer  who  cuts  a  piece-rate  is  expelled  from  the 
employers'  association  and  is  left  alone  to  defend  him- 
self against  the  union.  The  union  has  removed  its 
restrictions  on  output,  and  every  man  is  left  to  earn  as 
much  as  he  wishes,  without  the  fear  of  menacing  his 
own  or  others'  wages.  It  required  some  fifteen  years  of 
the  agreement  system  to  bring  about  this  final  result, 
so  inveterate  and  abiding  had  been  the  distrust  by  the 
union  of  the  employer's  power  or  will  to  restrain  himself 
from  seizing  upon  the  efficiency  earnings.  Many  of  the 
other  rules  of  this  interesting  system  of  industrial 
organization  are  worth  while  to  the  student  of  industrial 
efficiency.  Throughout  these  rules  run  the  two  con- 
flicting principles  —  efficiency  and  restriction  —  both 


140  LABOR  AND  ADMINISTRATION 

of  them  brought  into  a  kind  of  equilibrium  by  the  higher 
principle  of  organization. 

I  do  not  mean  to  say  that  the  trade  agreement  system 
of  the  stove  industry  is  the  only  form  of  organization 
that  scientific  study  and  ingenuity  can  work  out  for 
modern  industry.  Nor  do  I  mean  to  say  that  in  that 
system  the  participants  have  themselves  as  yet  worked 
out  all  of  the  problems  and  yoked  organization  to 
efficiency  so  that  they  will  always  run  lovingly  together ; 
nor  that  the  consumer  will  not  ultimately  demand  a 
voice  in  their  councils.  Nor  do  I  mean  to  say  that 
efficiency  engineers  are  not  taking  into  account  the 
problems  of  organization  as  well  as  individual  output, 
nor  that  the  hostility  of  unions  is  a  discriminating  and 
reasoning  hostility.  What  I  do  mean  to  say  is  this : 
the  employer's  business,  as  business  now  goes  on,  is  to 
attend  to  the  increase  of  efficiency;  the  wage-earner's 
business  is  to  sell  himself  to  do  the  employer's  bidding 
for  a  period  of  time.  The  two  interests  are  necessarily 
conflicting.  Open  conflict  can  be  avoided  in  three  ways : 
by  the  domination  of  the  employer,  as  in  the  steel 
trust  to-day ;  by  the  domination  of  the  union,  as  in  the 
iron  industry  prior  to  the  Homestead  strike;  by  the 
equal  dominion  of  the  two  interests,  as  in  the  stove 
foundry  business  to-day.  The  first  and  second  methods 
do  not  solve  the  problem ;  they  suppress  it.  The  third 
meets  it  in  the  same  way  that  similar  conflicts  are  met 
in  the  region  of  politics ;  namely,  a  constitutional  form 
of  organization  representing  the  interests  affected, 
with  mutual  veto,  and  therefore  with  progressive  com- 
promises as  conflicts  arise. 

Foregoing  are  certain  general  bearings  of  the  ques- 
tion. They  indicate  the  fields  for  investigation.  It  is 


UNIONS  AND   EFFICIENCY  141 

the  business  of  science  to  work  out  the  details  and  to 
combine  details  into  workable  systems.  I  have  sug- 
gested the  comparison  of  the  early  empirical  systems  of 
efficiency  with  the  modern  scientific  systems.  The 
modern  systems  are  certainly  a  great  advance  on  the 
early  ones.  All  of  them  have  this  fact  in  common, 
that  they  recognize  the  principle  of  a  minimum  wage, 
which  the  old  theory  of  wages  disregarded.  Here  it 
seems  that  the  long  struggle  of  organized  labor  has 
received  the  sanction  of  science,  and  that  the  principle 
of  efficiency  is  to  be  abandoned  when  it  is  not  adequate 
to  support  the  standard  of  living.  The  unions  have 
contended  that  the  minimum  wage  is  not  the  same  as  a 
maximum.  They  permit  the  employer  to  pay  more 
than  the  minimum  if  he  wishes  to  do  so.  Now  conies  the 
scientific  engineer  and  takes  them  at  their  word  and 
does  it  in  such  a  precise  and  mathematical  way  that 
p  no  Hpuht.  of  his  devotion  to  truth.  It 


seems  illogical  in  the  unions  to  stand  out  against  a 
system  so  carefully  based  on  what  they  themselves 
have  fought  so  long  to  get.  Perhaps  their  ground  of 
dislike  is  only  sentimental.  Indeed,  they  do  not  like 
the  engineer's  quite  impersonal  methods  of  investigation 
and  recommendation.  They  know  that  he  is  hired  by 
the  employer  to  advise  him  how  to  get  the  greatest 
output  at  the  least  cost.  The  engineer  studies  how  to 
economize  the  forces  of  nature  embodied  in  physical 
capital  and  the  forces  of  human  nature  embodied  in 
men.  He  can  hardly  make  the  same  distinction  be- 
tween the  two  that  the  workman  makes.  The  stop- 
watch, the  special  slide  rule,  the  speedometer,  the  time- 
testing  laboratory,  have  the  same  use  applied  to  both. 
The  "  fatigue  curve  "  is  unfeelingly  figured  out  so  as  to  \ 


142  LABOR  AND  ADMINISTRATION 

I  show  the  speed  at  which  each  human  machine  should 
:.  run  in  order  to  insure  its  longest  life  and  greatest  effi- 
'  ciency. 

The  older  theory  of  labor,  when  the  merchant  was  in 
control,  was  resented  by  the  workman  as  a  commodity 
theory,  for  it  looked  upon  the  price  of  labor  as  governed 
by  demand  and  supply,  like  the  price  of  anything  else. 
The  engineer's  theory  is  rather  a  machinery  theory, 
for  it  looks  upon  labor  as  an  ingenious  and  necessary 
device,  governed,  indeed,  not  by  laws  of  physics,  but  by 
laws  of  psychology.  This  device  has  certain  fixed  charges 
which  must  be  met  in  the  fashion  of  maintenance,  re- 
pairs and  depreciation,  by  a  minimum  wage  to  support 
a  standard  of  living.  Over  or  under  this,  each  individual 
differs  from  others,  not  perhaps  in  load,  slippage,  fric- 
tion and  other  physical  details  which  machinery  takes 
over,  but  in  the  psychological  motives  that  induce 
attention,  continuity,  watchfulness.  Compensation  is 
the  inducement  that  evokes  these  motives,  and  compen- 
sation should  be  as  nicely  adjusted  to  each  detail  of 
psychology  and  effort  as  is  the  adjustment  of  an  electric 
current  to  the  machine  it  is  fed  into.  The  blacksmith's 
bonus  should  be  greater  than  the  machinist's,  because 
the  blacksmith  has  to  be  induced  to  carry  a  greater 
load.  And  it  is  by  nice  experiment  and  comparison  that 
the  precise  point  is  determined  where  the  maximum  ratio 
of  output  to  ingo  lies. 

This  theory  and  this  practice  are  certainly  more 
illuminating  and  hopeful  than  the  commodity  theory, 
but  somehow  they  still  lack  something  needed  to  arouse 
the  approbation  of  the  man  investigated. 

I  am  inclined  to  think  that  the  lacking  thing  in  the 
theory  is  the  fact  that  it  will  be  the  employer,  the  fore- 


UNIONS   AND   EFFICIENCY  143 

man,  the  superintendent,  and  not  the  scientific  engineer, 
who  will  carry  it  out  in  practice.  The  minimum  wage 
is  not  so  much  a  conclusion  of  science  as  an  adjustment 
to  circumstances.  It  represents  the  balance  of  two 
forces  that  are  continually  changing.  If  the  wage 
contract  were  an  ordinary  contract  enforceable  at  law, 
the  engineer  might  install  his  system,  tie  it  up  and  then 
go  away  until  the  contract  ran  out.  But  the  wage 
contract  is  practically  a  new  contract  every  morning. 
The  employee  can  quit,  and  the  employer  can  discharge 
him,  at  any  moment.  The  new  employee  may  be  taken 
on,  or  the  old  one  taken  back,  at  a  different  rate.  Even 
without  a  conscious  purpose  to  violate  the  promise,  a 
period  of  unemployment  is  certain  to  break  the  connec- 
tion between  old  and  new  employees,  old  and  new  con- 
tracts. If  there  is  no  authority  and  no  bargaining 
power  able  to  require  that  the  new  contract  shall  run 
the  same  as  the  old  one,  only  good  faith  and  self-interest 
will  be  left  to  decide  it.  This  is  as  much  as  to  say  that 
the  union  man  cannot  conceive  of  a  minimum  wage 
without  a  union  or  a  statute  to  enforce  it. 

The  minimum  wage  requires  as  its  counterpart  a 
system  of  extra  pay  for  greater  efficiency.  The  atti- 
tude of  unions  toward  the  bonus  system  is  hostile.  Strong 
unions  even  stake  their  existence  on  forcing  the  issue 
against  it.  Even  the  Locomotive  Engineers,  the  least 
chargeable  of  all  unions  with  restrictive  policies,  required 
the  Santa  Fe  railroad  officials  to  abandon  it  after  -a  few 
months'  trial.  At  the  conference  when  this  decision  was 
reached,  the  heads  of  the  organization  avowed  their 
willingness  to  cooperate,  but  said,  "So  far  as  this  prize 
system  that  you  have  at  the  present  time,  we  are  all 
afraid  of  it.  We  are  afraid  of  the  principle  behind  it." 


144  LABOR  AND   ADMINISTRATION 

And  one  added  in  regard  to  the  machinists,  who  had 
been  defeated  in  their  strike  against  the  system,  "  I  do 
not  believe,  had  the  old  class  of  men  remained  here  with 
their  organization,  that  it  ever  would  have  been  possible 
for  you  to  put  the  bonus  system  in  among  the  machinists 
in  your  shops."  l  This  attitude  of  the  engineers,  the 
most  favorable  of  all  unions  toward  the  policies  of  their 
employers,  standing  by  the  Santa  Fe  railroad  for  three 
or  four  years  while  it  defeated  the  machinists  and  in- 
stalled the  system  in  its  machine  shops,  but  ready  to 
invite  the  fate  of  the  machinists  in  order  to  get  rid  of  the 
same  system  applied  to  themselves,  is  conclusive  of  the 
hostile  attitude  of  organized  labor.  In  this  case,  also, 
the  engineers  were  standing  against  the  least  objec- 
tionable form  which  the  bonus  system  has  taken.  It 
was  not  the  form  but  the  "  principle  behind  it  "  that 
they  resisted. 

Reduced  to  its  last  analysis,  the  "  principle  "  of  the 
bonus  system  is  the  principle  of  individual  bargaining 
instead  of  union  bargaining.  Union  bargaining  means 
more  than  the  formal  negotiations  at  the  time  when  the 
schedule  of  wages  is  made  up.  It  means  continuous 
oversight  of  each  individual  contract,  and  ability  to 
require  that  it  conform  to  the  schedule.  Its  machinery 
must  be  something  like  that  of  a  purchasing  department 
with  its  testing  laboratory  to  determine  whether  each 
delivery  of  goods  comes  up  to  the  specifications.  The 
fear  of  the  unionist  is  the  fear  that  his  organization  can- 
not cope  with  the  infinite  number  of  little  variations 
from  the  schedule,  or  with  variations  that  the  schedule 
does  not  provide  for. 

The  different  bonus  schemes  differ  materially  in  the 

1  Machinists'  Journal,  Dec.,  1910. 


UNIONS   AND   EFFICIENCY  145 

degree  to  which  they  permit  these  variations.  The 
earlier  ones  -of  Taylor,  Halsey,  Rowan1  and  others, 
differed  but  little  from  piece-work.  A  bonus  was  figured 
on  each  piece  above  the  standard  number  of  pieces 
expected  for  the  minimum  wage.  On  certain  days  or 
pieces  the  man  might  make  a  bonus ;  on  other  days  or 
pieces  he  would  make  less  than  the  expected  number. 
This  close  calculation  works  out  into  something  like  a 
task  system,  for  the  man  who  does  not  make  a  bonus  is 
more  expensive  than  others  and  is  the  first  to  lose  his 
job.  On  the  other  hand  those  who  make  bonuses  set 
the  standards  for  comparison  with  others.  In  this  way 
each  individual  is  continually  carrying  on  a  bargain 
with  his  foreman,  setting  up  his  record  of  output  as  the 
claim  on  his  job,  while  competition  forces  all  to  meet 
him  with  as  good  a  bargain.  The  later  systems,  espe- 
cially the  Emerson  cumulative  system,  eliminate  the 
accidents  and  fluctuations  of  the  earlier  systems  by 
figuring  the  bonus  on  a  man's  entire  work  for  a  month, 
rather  than  on  each  separate  job  or  piece.2  But  they 
retain,  of  course,  the  essential  feature  of  the  individual 
bargain. 

How  difficult  it  is  for  a  union  to  cope  with  these  indi- 
vidual differences  may  be  seen  even  in  the  collective 
bargaining  of  the  strongest  unions.  The  employers  argue 
from  the  record  of,  say,  the  ten  best  men  and  the  em- 
ployees from  the  record  of  the  ten  poorest  men.  The 
place  where  the  minimum  wage,  or  the  piece-rate,  or  the 
bonus  rate,  shall  be  placed,  is  partly  a  matter  of  evi- 

1  See  description  of  earlier  systems  in  American  Economic  Association 
Studies,  Vol.  I;  also  Commons'  "Trade  Unionism,"  p.  274. 

2  See   description  of   Emerson's   system   in  Engineering  Magazine, 
series  of  articles,  1910-1911. 

L 


146  LABOR  AND  ADMINISTRATION 

dence,  partly  a  trial  of  strength.  The  evidence  is 
seldom  conclusive  and,  since  laborers  generally  are  the 
aggressive  party,  seeking  higher  wages,  shorter  hours 
and  better  conditions,  the  evidence  is  not  enough  to 
carry  their  point.  This  is  a  reason  why  arbitration 
by  a  disinterested  third  party  is  distasteful  to  them. 
And,  since  each  side  puts  up  only  its  strongest  evidence, 
neither  can  be  trusted  to  act  on  the  evidence  of  the 
other,  however  scientific,  except  when  confronted  by 
equal  bargaining  power  of  the  other.  Even  the  exact 
methods  of  the  efficiency  engineer  are  only  a  more 
precise  form  of  evidence  and  are  not  enough  to  settle  a 
question  which  turns  so  much  on  matters  of  opinion 
and  feeling  governed  by  the  bargaining  power  of  the 
parties.  To  the  extent  that  the  individual  bargain 
enters,  the  laborers,  as  a  whole,  are  not  able  to  make 
advance  against  the  employer's  defensive  position.  It  is 
this  fact,  that  so  much  depends  on  bargaining,  and  that 
bargaining  is  the  daily  contact  of  employer  and  em- 
ployee, whereas  efficiency  records  and  standards  are 
merely  data  for  comparisons  in  bargaining,  that  gives 
occasion  for  the  efficiency  engineer  often  to  explain  the 
failure  of  his  system  by  the  "  failure  of  employers  to 
act  on  his  recommendations."  The  fundamental  de- 
fect is  the  failure  to  investigate,  first,  the  bargaining 
relations;  then  to  organize  these  relations  in  such  a 
way  that  conflicts  of  opinion  and  interest  will  be  fur- 
nished a  channel  for  expression  and  compromise ;  and 
then,  last  of  all,  to  work  out  the  standards  and  records 
under  the  direction  of  and  subordinate  to  this  organiza- 
tion of  the  bargaining  parties.  I  do  not  pretend  to  say 
how  this  shall  be  done.  It  also  is  a  matter  for  investiga- 
tion in  each  case.  I  only  contend  that  the  individual 


UNIONS  AND   EFFICIENCY  147 

bargain  should  be  eliminated  as  far  as  possible  and  the 
collective  bargain  substituted. 

Trade  unionists,  in  this  matter,  are  not  different  from 
non-unionists.  The  trade  unionist  has  merely  secured 
power  to  do  what  the  others  would  like  to  have  done.  I 
know  of  one  huge  "  trust  "  which  succeeded  long  ago 
in  driving  out  organized  labor,  but  which  finds  in  all  of 
its  shops  an  inexplicable  arrangement  that  prevents  any 
man  from  earning  more  than  a  certain  amount  of  money 
at  piece-rates.  Perhaps  scientific  management  and  the 
bonus  system  would  break  down  this  apparent  con- 
spiracy, but  I  should  expect  it  to  recover  after  the  men 
became  familiar  with  the  new  devices.  Nothing  is 
more  surprising  often  to  employers  and  the  merely  scien- 
tific man,  than  the  unanimity  with  which  thousands  of 
unorganized  laborers  will  suddenly  turn  out  on  strike 
at  the  call  of  a  few  hundred  organized  laborers.  It  is 
their  desperate  recognition  that  the  day  of  individual 
bargains  is  gone  for  them.  And  it  would  seem  that  a 
great  corporation,  representing  thousands  of  stockholders 
speaking  through  one  man,  might  be  able  to  anticipate 
unionism  by  finding  some  means  of  scientific  organiza- 
tion of  labor  before  installing  scientific  management.  In 
lieu  of  this,  they  wait  until  a  union  is  formed,  and  then 
complain  that  it  is  hostile  to  efficiency.  The  example  of 
the  stove  moulders,  which  I  have  given,  shows  that  their 
hostility  to  efficiency  is  the  hostility  to  methods  that 
take  them  at  a  disadvantage  in  their  power  of  protect- 
ing themselves.  When  once  they  are  guaranteed  assur- 
ance, as  in  the  foundry  business,  that  this  will  not  be 
done,  they  respond  as  reasonably  as  other  people. 

There  are  many  attractive  and  important  contribu-  \ 
tions  which  the  efficiency  engineers  are  making  towards 


148  LABOR  AND   ADMINISTRATION 

the  solution  of  labor  problems.  Their  careful  study  of 
the  human  element  in  production  is  notable,  appearing 
in  the  greatest  variaty-ef  applications  under  the  name  of 
orkJV  They  are  bringing  forward  issues 
merely  obstructive  unionism  will  be  compelled  to 
meet  in  a  spirit  of  cooperation  or  else  go  down.  On 
the  other  hand,  it  is  an  uninformed  opinion  that  persists 
in  holding  that  the  opposition  of  organized  labor  to 
industrial  efficiency  is  merely  obstructive  and  unrea- 
soning. Organized  labor  is  rather  the  organized  expres- 
sion of  what  labor  in  general  would  express  if  organized. 
To  meet  the  avowed  hostility  of  organized  labor  is  to 
meet  the  instinctive  hostility  of  nearly  all  labor,  based 
on  experience.  It  is  not  enough  merely  to  adopt  clever 
devices  of  compensation  designed  to  separate  laborers 
into  individual  bargaining  units,  fcr_iLjg_  exactly  this 
separation  that  competitive  conditions  are  forcing  labor- 
ers, as  well  as  capitaTistsTTo  overcome?  Itisalso  neces- 
sary to  adopt  methods  that  will  recognize  the  mutuality 
and  solidarity  of  labor  and  to  convert  this  craving  for 
harmony  and  mutual  support,  as  well  as  the  impulse  of 
individual  ambition,  into  a  productive  asset. 


CHAPTER  XI 

EUROPEAN   AND   AMERICAN   UNIONS1 

THE  labor  movement  in  America,  compared  with  that 
in  Europe,  has  shown  remarkable  peculiarities.  These 
have,  in  the  main,  grown  out  of  different  economic  and 
political  conditions.  Perhaps  the  most  striking  dif- 
ference is  that  brought  about  by  universal  suffrage.  It 
was  not  until  1867  that  suffrage  was  granted  to  artisans 
in  Great  Britain,  and  not  until  1885  that  it  was  granted 
to  agricultural  laborers.  But  the  suffrage  became 
nearly  universal  in  the  northern  states  of  the  Union 
before  1830,  and  the  first  activity  of  the  laboring  people 
turned  upon  the  utilization  of  their  newly  found  politi- 
cal rights.  This  began  in  1829,  when  the  first  labor  party 
was  formed,  and  in  1834  the  first  labor  politician,  Ely 
Moore,  of  New  York,  was  elected  to  Congress.  As  a 
result  of  this  participation  in  politics  by  the  wage-earn- 
ing class,  the  older  political  parties  have  contended  for 
their  influence,  and  have  made  concessions  to  the  labor 
vote.  This  has  tended  at  all  times  to  break  up  the 
solidarity  of  the  labor  movement.  Leaders,  like  Ely 
Moore,  are  lifted  out  of  the  labor  movement  and  trans- 
ferred to  an  independent  position  on  a  salary  in  the 
political  field.  At  the  same  time,  there  have  been  but 
meager  civil  service  requirements,  and,  consequently, 
labor  leaders  have  received  administrative  appointments 
which  rendered  them  independent  of  their  labor  constit- 

1  Chautauquan,  April,  1911,  pp.  247-254. 
149 


150  LABOR  AND  ADMINISTRATION 

uency.  The  result  has  been  that  politics  has  drawn 
off  the  labor  leaders  and  has  continually  weakened  the 
solid  front  which  has  characterized  the  labor  movement 
in  England  for  sixty  years. 

This  explains  one  of  the  interesting  differences  be- 
tween American  and  European  unionism,  namely,  the 
part  played  by  professional  men  and  representatives  of 
the  middle  classes.  In  the  British  labor  party  of  to-day 
we  find  such  men  as  Macdonald,  Snowden  and  others, 
university  or  professional  men,  coming  into  the  labor 
movement  by  the  way  of  socialism;  but  in  America 
at  no  time  has  there  been  any  leadership  of  unionism  by 
professional  men.  There  have  been  such  men  as  Henry 
D.  Lloyd,  outspoken  defenders  of  the  unions,  but  never 
leaders  in  their  councils.  The  professional  element  in 
the  American  labor  movement  has  been  that  of  men  who 
were  labor  leaders  first  and  lawyers  and  politicians 
afterwards.  This  has  been  characteristic  from  the  time 
when  Ely  Moore  became  the  friend  of  Andrew  Jackson 
to  the  present  time.  In  other  words,  the  "  intellectuals  " 
of  the  British  unions,  and  the  same  is  more  generally 
true  of  the  continental  unions,  have  come  from  outside 
the  labor  movement.  In  America  the  "  intellectuals  " 
have  been  a  product  of  the  movement  itself. 

The  second  peculiarity  having  a  similar  effect  has 
been  that  of  abundance  of  land.  It  was  not  until 
about  1890  that  it  became  generally  impracticable  for 
wage-earners  to  leave  the  cities  of  the  East  and  to  create 
for  themselves  independent  means  of  livelihood  in  the 
West.  Since  1890,  workingmen  moving  to  the  West 
find  employment  at  some  times  more  congested  than 
in  the  East.  Consequently,  labor  now  rebounds  to  the 
East,  intensifying  class  solidarity.  But  prior  to  the  last 


EUROPEAN  AND   AMERICAN  UNIONS       151 

decade  or  two  there  could  be  no  solid  labor  movement, 
for  the  most  ambitious  and  aggressive  of  the  labor 
leaders,  dissatisfied  with  their  economic  condition, 
could  readily  abandon  their  fellows  and  find  an  inde- 
pendent subsistence  in  the  West.  Thus  the  labor  move- 
ment has  been  one  of  waves,  depending  upon  the  fluctua- 
tions in  industry  and  the  cost  of  living.  The  two  periods 
of  greatest  inflation  and  rapid  rise  of  prices  culminated 
in  1835  and  1865.  Each  was  caused  by  an  inflation  of 
paper  currency.  Prices  rose  so  much  more  rapidly  than 
wages  that  wage-earners  were  unable  to  escape  to  the 
West.  They  were  perforce  compelled  to  organize, 
and  with  the  most  astonishing  success  they  forced  wages 
up  above  anything  that  European  unions  could  boast. 
But  their  success  was  short-lived.  The  ensuing  depres- 
sion disintegrated  their  forces,  and  their  leaders  went 
West  or  were  drawn  off  by  the  political  programme 
offered  to  them  by  the  leading  parties. 

Another  peculiarity  of  the  American  labor  move- 
ment is  a  result  of  immigration  and  the  variety  of  na- 
tionalities and  races  that  must  be  brought  together  in 
a  single  organization  if  the  movement  is  to  be  a  success. 
Immigration  did  not  show  its  effect  until  about  1850. 
Then  we  find  the  first  indications  of  two  languages  in 
union  meetings:  German  and  English.  No  under- 
standing of  the  American  movement,  compared  with 
that  especially  of  England,  can  be  acquired  until  one 
perceives  the  importance  of  race  and  language.  These 
underlie  the  strenuous  demand  of  American  unions  for 
the  closed  shop,  as  compared  with  the  relative  indiffer- 
ence of  English  unionists  on  this  subject.  The  closed 
shop  is  essentially  labor's  application  of  the  protective 
tariff  principle.  The  older  nationalities  have  often 


152  LABOR  AND  ADMINISTRATION 

created  organizations  denying  the  right  of  non-unionists 
to  work  alongside  in  the  trade,  with  the  most  startling 
results  in  the  different  levels  of  wages  in  the  same  local- 
ity. Up  to  the  decade  of  the  fifties,  it  would  scarcely 
happen  that  a  skilled  laborer,  such  as  a  bricklayer, 
would  receive  wages  more  than  double  the  rate  of  pay 
of  a  common  laborer.  This  is  true  at  the  present  time 
in  England,  where,  in  general,  we  might  find  a  brick- 
layer getting  twenty  cents  an  hour,  with  a  common 
laborer  getting  ten  cents  an  hour.  But  during  the  past 
sixty  years  the  bricklayer  in  America  has  pushed  his 
wages  up  from,  say,  two  dollars  a  day  of  ten  hours  to 
five  or  six  dollars  for  eight  hours ;  while  common  labor 
has  been  able  to  advance  only  from  a  dollar  for  ten 
hours  to  a  dollar  and  a  half  or  a  dollar  seventy-five  for 
the  same  number  of  hours.  In  other  words,  by  means  of 
the  closed  shop,  this  class  of  skilled  labor  has  been  able 
to  increase  its  wages  three-fold,  or  200  per  cent,  measured 
by  the  hour;  while  common  labor  has  increased  only 
50  or  75  per  cent.  The  discrepancy  has  not  been  as 
great  in  other  industries,  where  the  closed  shop  has  not 
been  so  successfully  maintained,  but  the  difference  in 
all  cases  is  far  greater  than  that  between  European 
organized  and  European  unorganized  labor. 

On  the  other  hand,  the  advantage  of  a  common  race 
and  a  common  class  feeling,  particularly  among  British 
and  German  wage-earners,  has  made  it  possible  for 
unions  to  hold  their  ground  without  serious  menace 
from  non-unionists.  The  non-union  Englishman  is 
much  more  opposed  to  taking  the  job  of  the  union 
Englishman  than  a  non-union  Italian  to  taking  the  job 
of  a  union  Irishman.  It  is,  therefore,  on  this  question 
of  races  and  immigration  that  the  real  class  conflict  in 


EUROPEAN   AND    AMERICAN  UNIONS       153 

American  industry  has  occurred;  for  the  backward  or 
alien  races  have  been  made  the  instruments  of  employers 
to  reduce  the  wages  of  the  older  nationalities.  The 
hostility  to  immigration,  exhibited  by  American  union- 
ists, is  simply  evidence  of  their  attack  upon  the  instru- 
ments used  by  their  employers  to  defeat  their  demands, 
and  the  remarkable  thing  about  American  unionism  in 
the  last  fifteen  years  has  been  its  capacity  to  bring 
together  in  one  organization  many  different  nationalities. 
This  is  most  strikingly  the  case  among  the  coal-mine 
workers,  and,  in  such  cases,  the  newer  races  of  Slavs 
and  Italians  have  been  able  to  advance  their  pay  often 
100  to  200  per  cent ;  whereas,  older  races  of  skilled  miners 
have  advanced  perhaps  50  per  cent.  In  other  words,  an 
equalization  of  wages  occurs  in  both  countries  at  different 
levels  and  in  different  degrees.  In  Europe,  skilled  labor 
tends  to  approximate  to  that  of  unskilled  on  account  of 
class  solidarity  and  common  language.  In  America, 
unskilled  labor  is  lifted  towards  the  wages  of  skilled  labor 
when  the  two  are  brought  together  by  the  closed  shop 
within  the  same  union. 

Another  peculiarity  of  American  labor  movements  is 
our  federal  system  of  government  and  the  constitutional 
supremacy  of  our  judiciary  over  labor  legislation. 
On  account  of  the  fact  that  we  have  some  fifty  different 
legislative  bodies  enacting  labor  laws  on  entirely  dif- 
ferent levels  of  pressure,  and  as  many  different  courts 
declaring  these  laws  unconstitutional,  labor  has  been 
compelled  to  organize  over  a  wide  area,  to  solidify  its 
organization,  and  to  enact,  by  the  power  of  organization, 
uniform  laws  which  our  federal  system  and  our  written 
constitutions  have  prevented  the  states  from  enacting. 
The  real  beginnings  of  labor  legislation  came  after  the 


154  LABOR  AND  ADMINISTRATION 

labor  movement  of  the  sixties  and  the  Knights  of  Labor 
of  the  eighties.  Almost  all  of  this  legislation  has  been 
declared  unconstitutional  in  one  state  or  another,  and, 
consequently,  we  find  that  a  union  like  the  mine  workers, 
unable  through  the  law  to  secure  weekly  payments  or 
prohibition  of  the  trucking  system  and  company  houses, 
proceeds  over  a  wide  range  of  states  to  enact  such  laws 
by  mutual  agreement  with  employers  after  a  strike. 
Thus,  uniformity  of  legislation,  which  is  brought  about  in 
European  countries  by  a  single  legislature  enacting  laws 
for  the  entire  country,  is  brought  about  in  America  by 
a  single  union  forcing  agreements  with  employers  for  an 
interstate  competitive  area. 

This  condition  also  explains  in  part  the  insistent 
demand  of  American  labor  for  the  exclusive  policies  of 
the  closed  shop,  and  explains  certain  peculiarities  regard- 
ing the  national  organizations  of  labor.  In  England, 
the  Trades  Union  Congress,  organized  in  1867,  is  really 
the  national  organization  of  the  trade  unions  for  legis- 
lative and  parliamentary  purposes,  and  out  of  the 
Trades  Union  Congress  has  grown  the  labor  party  of  the 
past  ten  years.  But  in  the  United  States,  where  labor 
laws  are  enacted  by  the  several  states  and  not  appre- 
ciably by  the  Federal  government,  the  organization  of 
labor  for  legislative  purposes  is  the  State  Federation 
of  Labor.  Any  one  who  compares  the  Trades  Union 
Congress  of  England  with  the  American  Federation  of 
Labor  misses  the  point.  His  comparison  should  be 
made  with  the  state  federations  of  labor.  The  Ameri- 
can Federation  of  Labor  is  really  similar  to  the  British 
Federation  of  Engineering  and  Ship  Building  Trades 
or  to  the  more  recent  General  Federation  of  Labor, 
organized  with  a  fund  to  support  the  unions  in  case  of 


EUROPEAN  AND   AMERICAN  UNIONS       155 

strikes.  The  prime  purpose  of  the  American  Federa- 
tion of  Labor  is  to  protect  each  union  against  dual 
organizations  in  its  effort  to  legislate  for  the  entire 
country  through  strikes  and  boycotts.  The  prime 
purpose  of  the  state  federations  is  to  induce  the  state 
legislatures  to  enact  labor  laws.  The  Trades  Union 
Congress  of  Britain  does  not  seriously  concern  itself 
with  the  conflicts  of  dual  organizations  which  are  ad- 
mitted to  its  councils,  and  it  has  no  strong  executive 
committee  with  power  of  discipline  over  conflicting 
unions,  and  no  body  of  organizers  endeavoring  to  enlist 
non-unionists  in  the  ranks  of  organization.  These 
matters,  so  vital  to  the  American  Federation,  are  left 
in  Great  Britain  to  the  General  Federation,  or  to  the 
several  district  federations,  or  to  the  several  unions.  Of 
course,  where  the  Federal  government  in  America  has 
jurisdiction  in  matters  of  interest  to  labor,  such  as 
restriction  of  immigration,  hours  of  labor  on  public 
works  and  the  use  of  the  injunction  by  federal  courts, 
the  American  Federation  of  Labor  takes  an  active  leg- 
islative part  similar  to  that  of  the  Trades  Union  Con- 
gress. But  this  is  not  its  primary  purpose,  although 
there  are  indications  that  it  will  more  and  more  be 
forced,  in  resisting  the  federal  courts,  to  press  for  con- 
gressional legislation  restricting  the  courts. 

In  this  sense,  a  comparison  of  the  Trades  Union  Con- 
gress of  Great  Britain,  following  the  Taff  Vale  decision, 
with  the  American  Federation  of  Labor,  following  the 
use  of  the  injunction,  is  instructive.  The  Trades  Union 
Congress,  formed  primarily  for  parliamentary  purposes, 
was  able,  after  the  Taff  Vale  decision,  to  unite  with  the 
socialists  and  to  elect  labor  members  to  parliament; 
but  the  American  Federation  of  Labor  has  been  unable 


156  LABOR  AND  ADMINISTRATION 

and  unwilling  to  start  an  independent  labor  party, 
because  political  contests  would  disrupt  the  unions  in 
their  economic  contests.  The  Trades  Union  Congress 
can  go  ahead  in  politics,  while  the  General  Federation  of 
Labor  and  the  other  federations  remain  intact  in  the 
struggles  with  employers.  Following  the  British  anal- 
ogy, a  labor  party  in  America  should  be  started  by  a 
National  Federation  of  State  Federations  of  Labor. 

A  comparison  of  the  status  of  trade  unions  before  the 
law  in  England  and  America  will  emphasize  further 
this  distinction.  It  was  not  until  1875  that  British 
trade  unions  secured  a  legal  standing  that  would  free 
them  from  a  charge  of  conspiracy.  But  the  American 
unions  were  relieved  of  this  charge  by  the  decisions  of 
the  courts  as  early  as  1842,  following  their  aggressive 
political  movements  of  1830  to  1836.  In  England, 
by  the  time  of  the  Taff  Vale  decision  in  1901,  the  legis- 
lation of  1875  was  practically  nullified,  and  in  1906  the 
unions,  through  the  labor  party  and  the  Trades  Disputes 
Act,  secured  almost  complete  immunity  from  attacks  as 
organizations.  In  America,  after  the  astonishing  and 
unique  movement  of  the  eighties  through  the  Knights 
of  Labor,  based  mainly  on  the  use  of  the  boycott,  the 
courts,  although  adhering  to  their  precedents  relieving 
the  unions  of  the  charge  of  conspiracy,  introduced  the 
notion  of  malicious  conspiracy  and  the  method  of  the 
injunction  as  a  means  of  prohibiting  it.  The  boycott 
has  never  been  used  to  an  appreciable  extent  by  British 
unions,  and,  in  fact,  would  probably  create  such  popular 
hostility  that  it  would  be  destructive  of  the  unions.  On 
the  other  hand,  in  America,  the  boycott  has  been  as 
powerful  as  the  strike.  Such  unions  as  the  brewery 
workers,  hatters,  printers,  cigar  makers,  and  garment 


EUROPEAN   AND   AMERICAN   UNIONS       157 

workers,  have  their  strength  mainly  in  the  support  of 
fellow  unionists  who  refuse  to  purchase  the  products  of 
non-union  labor.  It  is  the  boycott  which  explains  the 
significance  of  the  doctrine  of  malicious  conspiracy,  that 
is,  a  conspiracy  designed,  not  "  to  benefit  one's  self," 
but  "  to  injure  the  business  of  another."  It  will  be 
seen,  therefore,  that  the  effort  of  the  American  trade 
unions  to  secure  that  immunity  which  the  Trades  Dis- 
putes Act  has  given  to  British  trade  unions,  involves  an 
effort  to  sustain  the  practice  of  the  boycott  which  the 
British  unions  have  not  practised.  In  fact,  we  must 
look  to  Germany,  with  its  powerful  socialist  movement, 
in  order  to  find  that  complete  legal  immunity  of  trade 
unions  in  the  use  of  the  boycott  which  is  essential  to  the 
existence  of  so  many  American  unions. 


CHAPTER  XII 

LABOR   AND   MUNICIPAL  POLITICS1 

NEITHER  municipal  ownership  nor  private  ownership 
have  accomplished  the  good  results  in  the  United  States 
that  should  be  expected  of  them,  and  both  are  far  behind 
what  both  have  accomplished  in  Great  Britain.  I  at- 
tribute this  backwardness  mainly  to  the  infancy  of  the 
movement  for  municipal  ownership  in  the  United 
States.  The  American  people  have  never  seriously 
studied  in  detail  the  financial,  political,  administra- 
tive and  labor  conditions  necessary  to  make  municipal 
ownership  a  success,  because  they  have  never  had 
thrown  upon  them  the  responsibility  and  necessity  of 
making  it  a  success.  The  question  has  not  yet  been 
big  enough  to  attract  attention,  and  all  the  energies  of 
the  people  in  municipal  government  have  been  consumed 
in  fighting  the  private  corporations  which  have  pos- 
session. We  are  in  precisely  the  same  position  that 
British  municipalities  occupied  40  years  ago  in  the  gas 
business,  and  15  to  30  years  ago  in  the  street  car  and 
electricity  business.  And  the  two  most  noticeable 
facts  regarding  the  movement  in  Great  Britain  are  the 

1  Summary  of  investigations  made  for  the  National  Civic  Federation 
in  1905  and  1906  and  printed  in  Volume  I  of  its  "Municipal  and  Private 
Operation  of  Public  Utilities,"  pp.  88-112.  Some  ten  cities  and  twenty- 
four  municipal  and  private  plants  were  visited  in  Great  Britain,  and  some 
fourteen  cities  and  fifteen  plants  in  the  United  States.  The  visiting 
party  was  selected  so  as  to  represent  the  "pros"  and  "antis"  of  municipal 
operation. 

158 


LABOR  AND   MUNICIPAL   POLITICS         159 

steady  improvement  made  in  municipal  operation  after 
municipal  ownership  had  passed  the  fighting  stage  and 
had  become  a  settled  policy,  and  also  the  great  improve- 
ment in  private  ownership  and  operation  during  the 
same  period.  In  comparing  the  two  countries,  I  have 
been  impressed  by  this  fact  more  than  anything  else, 
that  successful  private  operation  follows  successful 
municipal  operation.  The  private  companies  in  Great 
Britain  have  learned  to  accept  and  act  upon  a  view  of 
their  public  obligations  which  we  have  found  to  be 
utterly  foreign  and  inconceivable  to  the  managers  of 
similar  private  undertakings  in  the  United  States. 
This  is  seen  most  strikingly  in  the  fact  that  the  British 
companies  were  willing  that  our  engineers  should  make 
a  physical  valuation  of  their  properties  for  comparison 
with  their  capitalization  and  their  earnings,  whereas  the 
American  companies  would  not  permit  such  a  valua- 
tion. Many  of  the  British  companies  also  for  years 
have  been  subject  to  complete  publicity  of  their  accounts 
and  examination  of  their  books  by  public  auditors  and 
accountants,  thus  furnishing  information  that  we  were 
not  able  to  get  in  America.  This  kind  of  information 
is  essential  both  from  the  standpoint  of  the  prices  paid 
by  consumers  and  that  of  the  wages  paid  to  employees, 
because  it  enables  us  to  know  whether  prices  are  as  low 
and  wages  are  as  high  as  the  companies  can  reasonably 
afford.  Another  instance  of  the  higher  view  of  their 
obligations  held  by  British  companies  is  the  many 
precautions  they  have  taken  to  conciliate  their  employees 
and  to  prevent  the  necessity  of  strikes.  In  every  case 
this  higher  view  has  come  about  because  the  companies 
have  before  them  the  menace  of  municipal  ownership, 
if  they  do  not  live  up  to  their  public  obligations.  They 


160  LABOR  AND  ADMINISTRATION 

cannot  afford  to  have  strikes,  because  they  would  at 
once  arouse  into  action  the  demand  for  municipal 
ownership.  They  cannot  afford  to  keep  their  accounts 
private,  because  in  order  to  head  off  municipal  ownership 
they  must  let  the  people  know  just  how  much  profit 
they  are  making.  The  consequence  is  that  many  of 
the  vices  which  we  have  found  in  private  ownership 
in  the  United  States,  and  which  were  formerly  found 
in  Great  Britain,  have  been  largely  eliminated  in  that 
country.  And  at  the  same  time  the  vices  and  crudities 
of  municipal  ownership  which  we  have  found  in  the 
United  States  have  been  largely  eliminated  in  Great 
Britain  through  experience  and  through  the  accurate 
comparison  which  can  always  be  made  with  private 
ownership. 

My  interpretation  requires  that  at  least  for  some  time 
to  come,  both  private  ownership  and  municipal  owner- 
ship be  carried  along  side  by  side  in  the  same  country, 
that  each  municipality  have  full  power  and  home  rule 
to  change  from  one  to  the  other  according  to  its  judg- 
ment of  which  it  is  that  offers  the  better  results  in  the 
given  case;  and  that  in  this  way  the  defects  of  both 
municipal  and  private  ownership  in  the  United  States 
may  be  gradually  eliminated  and  both  may  be  brought 
to  the  higher  level  occupied  by  both  in  Great  Britain. 

Monopolies  and  Politics 

I  take  it  that  the  key  to  the  whole  question  of  munici- 
pal or  private  ownership  is  the  question  of  politics. 
For  politics  is  simply  the  question  of  getting  and  keep- 
ing the  right  kind  of  men  to  manage  and  operate  the 
municipal  undertakings,  or  to  supervise,  regulate  and 
bargain  with  the  private  undertakings.  The  kinds 


LABOR   AND   MUNICIPAL   POLITICS         161 

of  business  that  we  are  dealing  with  are  essentially 
monopolies  performing  a  public  service,  and  are  com- 
pelled to  make  use  of  the  streets  which  are  public  prop- 
erty. If  their  owners  are  private  companies  they  are 
compelled  to  get  their  franchises  and  all  privileges  of 
doing  business,  and  all  terms  and  conditions  of  service 
from  the  municipal  authorities.  And  in  carrying  out 
their  contract  with  the  municipality  they  are  dealing 
continually  with  municipal  officials.  Consequently  it 
is  absurd  to  assume  that  private  ownership  is  non- 
political.  It  is  just  as  much  a  political  question  to  get 
and  keep  honest  or  businesslike  municipal  officials 
who  will  drive  good  bargains  with  private  companies  on 
behalf  of  the  public  and  then  see  that  the  bargains  are 
lived  up  to,  as  it  is  to  get  similar  officials  to  operate  a 
municipal  plant.  We  do  not  escape  politics  by  resorting 
to  private  ownership  —  we  only  get  a  different  kind  of 
practical  politics. 

Since  these  businesses  are  monopolies  of  public  ser- 
vice and  must  make  use  of  public  property,  the  question 
of  municipal  ownership  is  entirely  different  from  that  of 
other  kinds  of  business.  A  private  business  that  has 
no  dealings  with  municipal  officials  and  is  regulated  by 
competition  has  no  place  in  this  investigation  except 
by  way  of  contrast.  We  have  found  that  this  difference 
between  the  two  kinds  of  business  is  not  always  appre- 
ciated by  certain  classes.  These  are  the  socialists  and 
the  public  utility  corporations.  The  socialists  are 
opposed  to  private  competition  in  any  form  and  would 
extend  public  ownership  to  all  kinds  of  business.  The 
public  utility  corporations  and  their  defenders  naturally 
seize  upon  this  position  of  the  socialists  to  confuse  the 
issues  respecting  their  own  kind  of  business.  The  public 


162  LABOR  AND  ADMINISTRATION 

at  large  is  misled  for  a  time  until  the  distinction  comes 
to  be  one  of  practical  importance.  This  attitude  of  the 
several  parties  to  the  controversy  was  most  clearly 
brought  to  our  attention  in  Glasgow,  where  public 
ownership  has  been  extended  to  all  of  the  businesses 
occupying  the  streets.  Following  the  municipal  tram- 
ways of  1894,  many  projects  were  brought  forward  for 
further  municipalization,  including  banking,  housing, 
insurance,  tailoring  and  baking.  Councillors  were 
elected  favorable  to  these  proposals,  and  the  voters, 
inspired  by  the  remarkable  success  of  the  tramways, 
were  not  critical  in  their  inspection  of  these  new  enter- 
prises which  the  council  was  contemplating.  In  the 
midst  of  this  socialistic  tide,  two  anti-municipal  owner- 
ship associations  were  organized  —  the  Citizens'  Union 
and  the  Rate-Payers'  Federation.  They  started  an 
active  agitation,  and,  along  with  other  influences,  the 
tide  of  municipalization  has  been  checked  or  stopped. 
We  were  led  to  believe  that  from  these  two  associations 
we  could  secure  information  that  would  correct  the 
universal  indorsement  of  municipal  ownership  found 
elsewhere  in  Glasgow,  but  were  surprised  to  find  that 
both  associations  indorsed  all  that  had  been  done  in 
municipalizing  tramways,  electricity,  gas  and  water. 
They  only  opposed  the  municipalization  of  other  under- 
takings competitive  in  character.  No  more  conclusive 
indorsement  of  the  success  of  municipal  ownership  in 
Glasgow  could  have  been  brought  to  our  attention,  but 
at  the  same  time  nothing  more  conclusive  could  be 
offered  to  show  that  the  general  public  cannot  be  per- 
manently deceived  by  the  fallacy  of  the  socialists  and 
the  dodge  of  the  franchise  corporations  in  confusing  com- 
petitive business  with  monopolistic  public-service  busi- 


LABOR  AND   MUNICIPAL   POLITICS         163 

ness.  The  essential  difference  is  that  the  public-service 
business  is  in  politics,  whether  operated  by  a  private 
company  or  by  a  municipality,  but  the  competitive 
business  does  not  depend  on  politicians  for  its  profits. 

In  Wheeling,  West  Virginia,  the  gas  employees  take 
part  in  the  primaries  of  the  Republican  party,  and  the 
motormen  and  conductors  of  the  street  car  companies 
are  given  leave  of  absence  on  pay  to  work  in  the  pri- 
maries of  both  the  Republican  and  Democratic  parties. 
Even  the  officers  of  the  street  railway  employees'  union 
take  part  in  this  kind  of  traction  politics  on  behalf  of 
their  employers.  The  councilmen  and  aldermen  nomi- 
nated and  elected  in  this  way  control  the  municipal  gas 
works,  and  they  control  the  franchises  and  contracts  of 
the  private  companies.  The  "  City  Hall  Ring "  is 
just  as  much  a  ring  of  the  political  tools  of  the  private 
corporations  as  it  is  a  ring  of  municipal  politicians. 

In  cities  other  than  Wheeling  the  convention  system 
prevails  instead  of  the  direct  primaries,  and  consequently 
it  was  not  found  that  the  wage-earners  of  the  private 
companies  took  a  similar  active  part  in  political  cam- 
paigns. But  in  Syracuse,  Allegheny,  Indianapolis  and 
Philadelphia,  where  municipal  employees  are  named  by 
politicians,  it  was  found  also  that  street  car,  electric,  gas 
and  water  companies  had  employed  men  on  the  recom- 
mendation of  councilmen,  mayor  or  chairman  of  a  polit- 
ical committee.  This  practice  was  carried  furthest 
by  the  street  car  companies  of  Syracuse  and  Allegheny. 
In  Chicago,  where  a  most  rigid  civil  service  law  is 
enforced,  no  evidence  of  political  appointments  could 
be  found  in  the  municipal  electricity  or  water  depart- 
ments during  recent  years,  but  men  were  hired  on 
recommendation  of  aldermen  by  the  private  electrical 


164  LABOR  AND  ADMINISTRATION 

companies  at  the  time  when  their  contracts  were  before 
the  council  for  renewal. 

There  is  a  distinction  which  has  been  found  in  all 
of  these  cases  between  political  appointments  in  mu- 
nicipal undertakings  and  political  appointments  by 
franchise  corporations.  The  alderman  or  mayor  who 
secures  the  appointment  of  a  political  supporter  on  a 
municipal  job  exerts  himself  just  as  much  to  retain  that 
man  in  his  job  as  he  did  to  get  the  appointment  for  him. 
But  both  he  and  his  supporters  take  a  different  view 
when  the  appointment  is  secured  with  a  street  railway, 
gas  or  electric  company.  The  alderman  then  says,  "  I 
get  the  job  for  you,  but  you  must  make  good ;  I  cannot 
keep  the  job  for  you ;  the  company  has  the  right  to  dis- 
charge you  if  you  don't  do  your  work."  It  is  for  this 
reason  that  the  private  company  has  an  advantage  over 
the  municipal  management  under  the  spoils  system,  for 
it  can  get  rid  of  a  political  appointee  after  trying  him 
out  and  rinding  him  inefficient.  This  explains  also  why 
it  is  that  the  employees  of  a  franchise  corporation,  even 
though  they  get  their  appointments  through  politicians, 
are  nevertheless  found  to  take  an  active  part  in  organiz- 
ing themselves  in  a  trade  union,  but  where  they  depend 
on  the  politicians  for  retaining  their  jobs  and  improving 
their  wages  and  conditions  they  do  not  look  to  a  union  for 
protection.  Where  the  politicians'  support  stops  after 
appointment,  as  in  a  private  undertaking,  they  are 
more  likely  to  protect  themselves  by  organizing  a  union. 
The  result  is  similar  in  a  municipal  undertaking  when  civil 
service  reform  releases  the  employee  from  depending  on 
a  politician.  The  trade  unions  in  Chicago  have  no  dif- 
ficulty in  organizing  the  workmen  who  have  been 
appointed  through  the  Civil  Service  Commission,  but 


LABOR  AND   MUNICIPAL   POLITICS         165 

they  are  not  able  to  get  the  "  hold-overs  "  who  came 
in  through  political  pull. 

Curiously  enough,  the  politician  profits  more  in 
some  respects  by  the  appointments  which  he  secures  for 
his  supporters  with  a  franchise  company  than  he  does 
by  those  on  municipal  jobs.  Since  all  parties  under- 
stand that  the  alderman's  influence  stops  after  appoint- 
ment, there  is  no  ill  feeling  on  the  part  of  his  supporter 
if  he  is  discharged.  He  and  his  family  and  friends 
continue  to  be  the  supporters  of  the  alderman  who  has 
done  his  best  for  them,  and  his  discharge  at  the  same 
time  makes  room  for  the  alderman  to  name  another 
man,  who  also  with  his  family  and  friends  become  sup- 
porters. It  is  different  in  municipal  employment, 
where  it  is  expected  that  the  politician  who  gets  the  job 
for  his  follower  will  keep  it  for  him.  If  he  is  removed 
from  that  job  he  loses  confidence  in  the  ability  or  good 
faith  of  the  politician.  On  account  of  these  differences 
in  the  attitude  of  workmen,  politicians  and  managers, 
the  private  corporation  in  politics  is  more  efficient  from 
the  standpoint  of  its  stockholders  than  the  municipal 
undertaking  in  politics,  and  at  the  same  time  the  capable 
politician  can  build  up  his  organization  just  as  effectively 
under  one  system  as  under  the  other.  Where  civil 
service  rules  are  enforced,  as  in  the  Chicago  Electric  and 
Water  departments,  this  political  influence  is  excluded, 
but  there  is  no  way  of  preventing  a  private  corporation 
from  hiring  its  employees  on  the  recommendation  of  a 
politician. 

-There  are  other  differences  which  operate  to  the  ad- 
vantage of  the  private  corporation.  Its  employees  are 
more  minutely  specialized,  and  a  few  positions  of  a  per- 
manent, semi-political  character  are  created  which  are 


166  LABOR  AND   ADMINISTRATION 

kept  distinct  from  the  technical  and  administrative 
positions,  whereas  in  the  municipal  undertaking,  without 
civil  service  rules,  a  larger  proportion  of  the  positions  are 
likely  to  be  semi-political.  The  municipal  undertaking 
is  compelled  to  keep  a  few  sub-managers,  foremen  and 
inspectors  who  are  familiar  with  the  layout  of  the  plant 
and  distributing  system,  and  such  positions  have  been 
found  to  be  permanent,  while  the  other  positions  are 
subject  to  political  vicissitude.  In  the  private  corpora- 
tions investigated  the  political  positions  are  found  not 
so  much  in  the  operating  department  as  in  the  legal  de- 
partment, and  among  the  directors,  presidents  and 
highest  officials.  These  make  the  bargains  directly,  by 
means  of  a  cash  consideration  or  otherwise,  with  the 
political  managers.  Only  where  nominations  are  made 
by  direct  primaries,  as  in  Wheeling,  has  it  been  found 
that  the  rank  and  file  of  the  employees  are  retained  on 
account  of  this  political  influence. 

Under  the  convention  system  of  nominations  the 
principal  activity  of  private  corporations  was  found  to 
be  that  of  contributions  to  the  expenses  of  campaign 
committees  and  candidates.  It  is  difficult  to  see  that 
it  is  necessarily  dishonorable  or  corrupt  for  any  citizen 
to  contribute  according  to  his  ability  toward  the  ex- 
penses of  his  political  party  in  conducting  a  campaign. 
The  education  of  the  voter  respecting  the  issues  is  of 
the  greatest  importance  and  requires  corresponding  ex- 
penditures. But  for  some  reason  these  contributions 
are  looked  upon  as  strictly  confidential,  and  it  was 
only  through  the  accident  of  my  personal  acquaintance 
with  certain  participants  in  Syracuse  and  Indianapolis 
that  any  information  on  the  point  was  given  to  me. 
This  shows  a  contribution  of  $2000  in  Syracuse  by  two 


LABOR  AND   MUNICIPAL   POLITICS         167 

directors  of  a  franchise  company  to  the  Democratic 
campaign  committee,  in  a  municipal  election.  It  shows 
contributions  at  Indianapolis  by  a  franchise  company 
in  the  municipal  campaign  of  1903  of  $300,  and  in  1905 
of  $1500  to  the  Democratic  committee,  and  in  1905 
of  $5000  to  the  Republican  committee.  In  1905  one 
company  paid  $10,000  to  the  Republican  committee, 
and  $2000  to  the  Democratic  committee,  and  another 
paid  $17,000  to  the  Republican  committee.  The  Repub- 
lican administration,  elected  in  1905,  has  to  deal  with 
important  franchises  and  contracts  renewable  during 
its  term. 

Efficiency  of  Municipal  Operation 

Whatever  weakens  or  corrupts  city  government  in 
its  admitted  duties  of  protecting  the  health,  property, 
life  and  morals  of  its  citizens,  also  weakens  or  corrupts 
it  in  operating  public  utilities  or  in  regulating  the  pri- 
vate operation  of  those  utilities.  We  cannot  separate 
the  question  of  municipal  or  private  operation  from  the 
question  of  honest  and  efficient  city  government  in 
every  other  department.  The  municipal  corporation  is 
a  unit,  and  the  supply  of  either  water,  gas,  electricity 
or  transportation  is  only  a  single  department  of  its  work, 
and  is  good  or  bad  to  the  same  extent  that  the  other 
departments  of  police,  fire,  health,  parks  and  taxes  are 
good  or  bad.  When  we  investigate  the  politics  and 
labor  of  these  four  public  utilities,  we  are  investigating 
the  whole  question  of  municipal  government.  If  the 
conditions  are  such  that  the  city  does  not  operate  or 
regulate  these  utilities  satisfactorily,  we  find  that  it 
does  not  do  anything  else  satisfactorily.  This  fact  is 
abundantly  demonstrated  when  we  take  up  one  by  one 


i68  LABOR  AND   ADMINISTRATION 

the  several  factors  that  go  to  make  up  the  total  political 
life  of  a  city. 

First  is  the  suffrage.  In  all  of  the  Northern  cities 
of  the  United  States  the  suffrage  is  on  the  universal  man- 
hood basis.  In  the  Southern  cities  it  is  restricted  by 
education  or  poll-tax  requirements,  and  in  British  cities 
by  tenant,  lodger  and  household  limitations.  These 
restrictions  bear  most  heavily  on  the  wage-earning  classes, 
amounting  to  the  exclusion  of  one-fourth  to  two-fifths 
of  the  wage-earners.  But  the  classes  excluded  are  the 
casual  and  irregular  laborers,  the  pauperized  and  indif- 
ferent workers,  the  hoodlum  and  hooligan  elements. 
These  are  mainly  the  unorganized  laborers,  so  that  in 
England  the  trade  unions  have  the  field  to  themselves, 
more  than  they  have  in  the  United  States,  for  entering 
upon  a  political  movement.  They  are  not  compelled 
to  make  alliances  with  political  bosses  who  know  how 
to  get  these  unorganized  voters.  In  two  Northern 
cities,  Indianapolis  and  Syracuse,  definite  information 
was  obtained  of  bribery  of  the  voters.  In  Indianapolis 
the  bribable  voters  are  largely  the  colored  element  of 
the  town,  and  in  Syracuse  the  hoodlum,  immigrant 
and  colored  element  of  the  down- town  precincts.  Among 
these  voters  a  large  part  of  the  campaign  contributions 
is  distributed. 

Next  to  the  suffrage  are  the  qualifications  of  the 
councillors,  aldermen  and  city  officials.  In  the  British 
cities  only  the  councillors  are  elected,  one  each  year, 
holding  three  years  for  each  ward.  The  councillors 
select  the  managers  and  city  officials.  Most  impor- 
tant of  all,  the  councillors  and  aldermen  are  not  re- 
quired to  live  in  the  wards  they  represent  and  many 
of  them  live  in  the  suburbs.  One-half  to  four-fifths 


LABOR  AND   MUNICIPAL   POLITICS         169 

of  the  councillors  and  aldermen  live  outside  the  wards 
they  represent,  and  the  proportion  is  strikingly  larger 
in  the  working-class  wards,  which  elect  two-thirds  to 
nine-tenths  of  their  councillors  from  outside.  Many 
inquiries  were  made  as  to  the  reasons,  on  the  part  of 
voters,  for  this  indifference  as  to  the  place  of  residence 
of  their  candidates,  and  the  explanation  that  seems  ade- 
quate is  the  absence  of  campaign  and  corruption  funds 
and  the  inability  of  councillors  to  find  jobs  for  their 
constituents.  The  councillor  in  Glasgow  who  is  most 
active  in  pressing  for  jobs  in  the  municipal  service  lives 
in  the  ward  which  he  represents,  among  constituents  in 
need  of  employment.  Furthermore,  councillors  and 
aldermen  are  unsalaried.  This  freedom  of  choice  makes 
it  possible  to  elect  both  the  leading  business  men  and 
the  leading  labor  men  to  govern  the  city.  Not  only 
do  we  find  eminent  bankers,  financiers  and  employers 
of  labor  in  the  councils,  but  we  find  the  secretaries  and 
officials  of  trade  unions,  most  of  them  living  outside  the 
wards  they  represent.  The  absence  of  such  leaders 
and  truly  representative  men  from  American  city  coun- 
cils is  the  most  discouraging  fact  brought  to  our  attention. 
We  have  not  found  any  of  the  leading  business  men 
corresponding  to  those  in  British  cities.  The  largest 
delegation  of  wage-earners  which  we  found  was  in  the 
city  of  Wheeling,  where  they  number  fourteen,  but  not 
one  of  them  was  an  official  or  representative  of  a  trade 
union,  although  the  unions  are  stronger  in  Wheeling 
than  in  the  other  places  visited.  There  the  wage-earn- 
ing councillors  were  largely  the  employees  of  corpora- 
tions whose  owners  were  interested  in  the  public  utility 
corporations.  Their  campaign  expenses  were  paid  from 
those  sources,  and  their  successful  qualities  were  those 


170  LABOR  AND  ADMINISTRATION 

of  a  good  "  mixer  "  with  the  voters,  and  obedience  to 
their  employers  in  casting  their  votes  as  councilmen. 
In  other  cities  not  provided  with  the  direct  primary  sys- 
tem of  nominations  there  were  practically  no  wage- 
earners  in  the  council. 

In  American  cities  the  form  of  organization  has  been 
found  to  be  most  complicated.  Authority  and  respon- 
sibility are  scattered  here  and  there  in  a  mayor,  a  com- 
mission, a  superintendent,  a  council,  a  committee  of  the 
council,  or  even  two  committees,  sometimes  a  joint 
committee  of  two  branches  of  the  council,  a  civil  service 
commission,  and  so  on.  The  finances  and  accounts  of 
municipal  undertakings  are  mixed  with  those  of  other 
departments.  Scarcely  any  system  that  we  have 
investigated  would  for  a  moment  be  recognized  as  satis- 
factory for  an  effective  business  management.  The 
voters  are  unable  to  tell  who  is  responsible  or  what 
exactly  are  the  financial  results.  The  one  preeminent 
advantage  of  private  operation  is  centralized  control 
by  one  man,  subject  to  a  board  of  directors.  This  is 
also  the  form  of  organization  of  the  British  cities,  where 
a  committee  of  the  council  takes  the  place  of  the  board  of 
directors,  and  the  manager,  selected  by  the  committee, 
holds  his  position  not  for  a  fixed  term,  but  permanently, 
or  until  removed.  The  American  system  most  nearly 
corresponding  is  the  commission  system  of  South  Nor- 
walk  and  Detroit,  which  permits  the  selection  of  men 
from  any  part  of  the  city  and  retains  a  number  of  them 
when  others  drop  out. 

The  foregoing  statements  refer  only  to  the  legal  or 
formal  organization  of  British  and  American  cities. 
The  real  political  influences  behind  this  formal  organiza- 
tion are  found  in  the  conflicting  interests  of  the  voters 


LABOR  AND   MUNICIPAL   POLITICS          171 

who  elect  or  control  the  city  officials.  In  both  countries 
the  interests  that  are  most  important  in  deciding  the 
results  are  those  of  the  saloon  keeper's,  real  estate  owners, 
political  parties,  trade  unions,  municipal  employees, 
business  classes,  contractors  and  franchise  corporations. 

In  both  countries  the  saloons,  known  in  England  as 
the  "  public  house,''  or  "  pub,"  are  regulated  by  the 
municipal  council.  This  compels  them  in  self -protection 
to  take  a  part  in  politics.  In  some  places,  like  Glasgow, 
their  candidates  make  a  pretence  of  standing  for  working- 
men,  and  they  appeal  to  the  labor  vote  in  support  of 
labor  measures  in  the  council.  In  other  places,  like 
Liverpool,  the  large  brewery  interests  enter  the  field  as 
capitalists,  and  elect  their  partners  to  the  council.  In 
American  cities  the  saloon  interest  is  an  important  wheel 
of  the  political  machine.  In  any  case  their  candidates 
are  elected,  not  for  the  sake  of  efficient  government,  but 
really  in  order  to  weaken  the  government  that  endeavors 
to  regulate  their  private  business. 

Much  less  evidence  was  found  of  real  estate  dealers 
and  speculators  in  British  cities  than  in  American  cities. 
Owing  perhaps  to  the  system  of  landed  property  and  the 
jealousy  of  the  landed  interest,  real  estate  speculation  is 
very  quiet  and  subdued  in  British  cities.  The  councils, 
outside  London,  are  almost  exclusively  of  the  commer- 
cial, manufacturing,  professional  and  labor  classes.  The 
purchase  and  sale  of  sites  either  by  a  council  or  by  a 
company,  and  the  selection  of  routes,  are  so  jealously 
controlled  by  the  landed  interest  intrenched  in  the 
House  of  Lords,  that  land  speculation  in  connection 
with  public  utilities  does  not  greatly  influence  the  local 
councils. 

In  all  of  the  cities  visited  in  Great  Britain,  except 


172  LABOR  AND  ADMINISTRATION 

Glasgow  and  London,  it  was  found  that  national  politi- 
cal parties  managed  the  municipal  elections.  The  excep- 
tion in  Glasgow  is  mainly  owing  to  the  fact  that  there  the 
Liberal  party  is  so  overwhelming  that  the  Tories  have 
no  chance.  Even  the  committees  that  manage  the 
municipal  undertakings  are  selected  so  that  the  dominant 
party  of  the  council  has  majorities.  In  two  places,  how- 
ever, Leicester  and  Birmingham,  an  eminent  financier 
of  the  opposite  party  is  elected  to  the  head  of  the  finance 
committee.  Party  politics  in  itself  is  not  a  barrier  to 
successful  municipal  operation.  The  part  taken  by  the 
working  classes  in  the  election  of  councillors  in  England 
is  divided  into  two  stages.  The  few  labor  members 
elected  ten  to  twenty  years  ago  came  in  as  members  of 
the  Liberal  party  and  they  retain  that  allegiance.  They 
are  first  Liberals  and  secondarily  trade  unionists.  The 
second  stage  is  that  of  the  Labor  party  of  the  past  five 
years,  in  which  the  trade  unions  have  joined  with  one 
wing  of  the  socialists.  The  object  of  the  Labor  party 
has  been  that  of  getting  legislation  to  protect  the  funds 
of  trade  unions  from  attachment  by  the  courts.  It  has, 
however,  organized  local  branches  for  municipal  elec- 
tions. Much  the  largest  number  of  candidates  put  up 
by  the  Labor  party  are  the  salaried  officials  of  the  unions, 
who,  if  elected,  retain  their  union  position.  They  are 
not  usually  "  organizers "  or  "  agitators,"  for  the 
British  unions  do  not  have  such  salaried  positions,  but 
they  are  the  official  secretaries  who  are  at  the  same  time 
the  experienced  negotiators  with  employers.  A  much 
smaller  class  of  so-called  "  labor  councillors  "  are  the 
socialists,  who  are  generally  small  merchants,  employers 
or  professional  men,  with  a  programme  more  radical  than 
that  of  the  trade  unionists.  Finally,  there  were  found 


LABOR  AND   MUNICIPAL   POLITICS         173 

a  half  dozen  political  adventurers  of  the  "  fakir  "  type, 
not  nominated  by  the  Labor  party,  but  taken  up  by  the 
Liberals,  Tories  or  public-house  interests  to  draw  off 
the  vote  of  the  Labor  party.  In  general,  while  some 
criticism  was  heard  from  aged  councillors  or  from  old- 
line  trade-union  Liberals,  to  the  effect  that  the  new 
labor  movement  was  deteriorating  the  character  of  the 
councils,  yet  the  criticism  was  confined  to  the  lack  of 
business  and  financial  capacity,  to  the  inability  to  take 
"  broad "  views  of  municipal  business,  and  to  the 
efforts  to  find  municipal  work  for  applicants.  With 
the  exception  of  the  half  dozen  adventurers,  no  criticism 
is  made  of  their  integrity  or  earnestness  and  sincerity  of 
purpose  in  urging  the  cause  they  advocate ;  while  in 
the  case  of  the  trade-union  officials  there  was  a  general 
agreement  on  the  part  of  all  classes  that  they  brought 
a  kind  of  intelligence  and  a  point  of  view  that  was 
needed  in  the  council's  deliberations  as  a  large  employer 
of  labor. 

Organizations  of  Municipal  Employees 

The  increase  in  municipal  ownership  in  Great  Britain 
has,  of  course,  brought  an  increase  in  the  number  of 
municipal  employees,  and  this  has  caused  apprehension 
in  certain  quarters.  Generally  the  chief  officers  of  the 
municipal  enterprises  take  the  ground  that  they  and 
other  employees  should  not  vote  in  municipal  elections, 
and  they  openly  set  that  example  to  their  subordinates. 
Some  of  them  go  even  so  far  as  to  advocate  the  disfran- 
chisement  of  municipal  employees  in  municipal  elec- 
tions. This  has  also  been  advocated  by  some  of  the 
councillors.  However,  such  a  proposition  is  no  longer 
seriously  considered.  If  the  vote  of  municipal  employees 


174  LABOR  AND  ADMINISTRATION 

is  a  menace,  the  remedy  must  be  looked  for  in  directions 
other  than  disfranchisement.  It  goes  without  proof 
that  such  a  remedy  is  needed,  for  municipal  employees 
sooner  or  later  cast  their  votes  for  candidates  who 
promise  or  have  secured  a  betterment  of  their  conditions, 
regardless  of  its  effect  on  the  enterprise  as  a  whole. 
Omitting  disfranchisement,  there  are  two  directions  in 
which  such  a  remedy  can  be  found,  first,  a  limit  to  be 
set  beyond  which  municipalization  shall  not  go,  and 
second,  the  attitude  of  the  public,  and  especially  of  the 
workmen  in  private  employment. 

Although  there  are  doctrinaire  and  socialistic  elements 
that  set  no  limit  to  public  ownership,  the  overwhelming 
sentiment  of  those  now  in  control  of  the  municipal  coun- 
cils places  a  limit  at  the  point  already  reached  by  cities 
like  Glasgow,  Manchester  and  Leicester.  With  this 
practical  agreement  there  is  no  prospect  that  the  num- 
ber of  municipal  employees  will  be  materially  increased 
beyond  the  proportion  reached  in  Glasgow,  where  their 
voting  strength  is  possibly  one-sixteenth  of  the  total. 
The  total  number  employed  by  the  London  County 
Council  and  the  London  Borough  Councils  is  about 
one-fourteenth  of  the  registered  voters. 

The  natural  tendency  of  municipal  employees  to  better 
their  own  condition  by  use  of  their  political  strength  is 
seen  in  the  growth  of  the  Municipal  Employees'  Asso- 
ciation. This  is  a  spurious  form  of  trade  unionism 
which  has  sprung  up  with  the  growth  of  municipaliza- 
tion, and  nothing  of  its  kind  has  been  found  among 
American  unions.  It  has  gained  affiliation  with  other 
unions  in  the  Trades  Union  Congress  and  in  local  Trades 
Councils.  Its  platform  is  simple  enough :  to  prohibit 
strikes,  to  oppose  councillors  at  the  polls,  if  they  stand 


LABOR  AND   MUNICIPAL   POLITICS          175 

in  the  way  of  granting  its  demands,  and  to  call  on  other 
unions  for  help  in  the  elections.  Its  demands  are  in 
excess  of  anything  that  other  unions  have  been  able 
to  secure  from  private  employers  or  even  from  municipal 
corporations.  It  invites  into  membership  all  employees 
of  municipalities,  and  since  they  are  nearly  all  eligible 
to  other  unions,  evidently  the  aim  of  this  organization 
is  to  separate  a  privileged  class  of  workmen,  and  to  do 
this  through  the  political  power  of  those  whom  they 
abandon.  It  weakens  other  unions  while  building  on 
their  support.  With  even  a  minimum  of  intelligence 
in  the  other  unions  such  a  parasitic  union  would  be  repu- 
diated. Such  has  been  the  fate  of  the  Municipal  Em- 
ployees' Association.  As  long  as  its  membership  was 
small  the  consequences  of  its  policy  were  not  observed, 
and  its  demands  received  the  uncritical  assent  of  others 
in  the  general  approval  of  all  efforts  to  raise  wages. 
But  with  its  rapid  growth  during  the  past  two  years, 
the  unions  of  unskilled  workmen,  who  suffered  first 
from  its  competition  for  members,  brought  their  pro- 
test to  the  Trades  Union  Congress  in  1906,  and  that 
body,  after  careful  deliberation,  repudiated  the  methods 
of  the  Municipal  Employees'  Association,  and  all  similar 
organizations  of  public  employees,  by  the  practically 
unanimous  vote  of  1,196,000  to  42,000.  It  is  thus 
promptly  settled,  before  this  organization  had  reached 
15,000  members  throughout  Great  Britain,  that  the  trade- 
union  world  is  clearly  opposed,  both  in  sentiment  and 
self-interest,  to  the  creation  of  a  privileged  class  of 
municipal  employees.  As  far  as  the  regular  trade 
unions  are  concerned  the  principle  of  trade-union  wages, 
rising  and  falling  in  municipal  employment  the  same  as 
in  private  employment,  is  accepted  in  its  full  significance. 


176  LABOR  AND  ADMINISTRATION 

Our  investigations  have  shown  that  the  proper 
method  of  dealing  with  employees  is  the  most  difficult  and 
critical  problem  of  municipal  ownership.  The  ap- 
pointment, promotion  and  dismissal  of  employees  and 
the  wages  to  be  paid  offer  peculiar  opportunities  for 
political  and  personal  influence  inconsistent  with  effi- 
ciency. Civil  service  reform,  so-called,  has  been  found 
in  its  highest  perfection  in  the  city  of  Chicago,  but  it  is 
evident  by  comparison  with  a  less  perfect  device  in  Syra- 
cuse that  its  integrity  depends  on  the  political  influences 
that  control  the  mayor  and  the  heads  of  departments. 
If  the  head  of  the  department  is  independent  of  politics, 
as  shown  in  Cleveland,  Detroit  and  South  Norwalk, 
the  civil  service  commission  is  not  needed.  The  Chi- 
cago system  is  a  temporary  bulwark  built  around  the 
departments  until  such  time  as  the  chief  officer  himself 
can  also  be  protected  from  political  selection.  This 
is  the  case  in  British  cities  where  the  idea  of  a  civil 
service  commission  is  unknown.  But  even  there,  espe- 
cially in  the  Sheffield  tramways,  appointments  have 
been  made  on  the  recommendation  of  councillors.  The 
experience  of  Glasgow  is  instructive.  Fifteen  years 
ago  the  practice  of  hiring  employees  on  the  recommen- 
dation of  councillors  was  universal  in  all  departments. 
But  with  the  growth  of  municipal  ownership  it  has 
almost  disappeared.  This  is  partly  because  several 
thorough  investigations  of  alleged  favoritism  have  been 
made  by  the  council ;  partly  because  public-spirited 
business  men  have  exposed  the  evil,  have  made  it  clear 
to  the  voters,  and  have  been  elected  to  the  council  on  the 
issue  of  driving  out  favoritism ;  and  partly  because  the 
adoption  of  the  minimum  wage  policy  of  the  labor  mem- 
bers has  stopped  the  practice  of  councillors'  unloading 


LABOR   AND   MUNICIPAL   POLITICS          177 

and  pensioning  their  old  employees  on  the  municipal 
pay-roll.  The  only  remnant  of  the  practice  discovered 
after  a  thorough  investigation  m  Glasgow  was  in  the 
unskilled  work  of  the  tramways,  and  this  came  about 
through  the  effort  of  that  department  during  the  indus- 
trial depression  of  1905-1906  to  aid  the  city  government 
in  finding  work  for  the  unemployed.  The  pressure 
for  employment  during  the  depression  was  enormous, 
and  all  managers  were  besieged  by  hundreds  of  appli- 
cants. A  card  of  introduction  from  a  councillor  secures, 
at  least  the  privilege  of  filling  out  an  application  blank, 
and  this  amounts  to  a  limited  preference  over  those 
who  do  not  have  such  cards,  but  the  managers  follow 
up  the  application  by  a  thorough  examination  before 
making  appointments.  In  other  places  all  charges 
of  favoritism  were  carefully  investigated,  and  they  were 
found  to  be  baseless,  except  in  the  case  of  motormen 
and  conductors  at  Sheffield.  These  are  selected  on  the 
recommendation  of  councillors.  The  Manchester  Tram- 
ways Committee,  at  the  beginning  of  its  organization, 
recognizing  the  possible  evil,  adopted  a  rule  instructing 
their  manager  not  only  not  to  pay  attention  to  letters 
from  councillors,  but  to  give  preference  to  applicants 
who  have  no  such  recommendations. 

Our  investigations  have  shown  that  the  strongest 
safeguard  for  a  manager  against  the  pressure  of  out- 
side recommendations  is  the  recognition  of  organized 
labor  within  his  department.  Wherever  we  have  found 
a  class  of  employees  organized  and  dealt  with  as  such 
through  their  representatives,  we  have  found  those  posi- 
tions exempt  from  politics.  This  follows  from  the  nature 
of  labor  organization,  which  cannot  survive  if  individuals 
are  given  preference  on  political,  religious,  personal  or 


178  LABOR  AND   ADMINISTRATION 

a'ny  other  grounds  than  the  character  of  the  work  they 
do.  Even  in  the  politically  honeycombed  municipal 
undertaking  of  Allegheny,  the  union  of  electrical  workers 
stopped  the  practice  of  paying  assessments  by  its  mem- 
bers for  political  campaigns.  The  success  of  the  civil 
service  system  of  Chicago  is  owing  more  than  anything 
else  to  the  fact  that  organized  labor  has  one  of  the 
three  members  on  each  examining  board.  The  manager 
of  the  Manchester  tramways  ascribes  his  freedom  from 
interference  by  individual  councillors  to  his  recognition 
of  the  union  that  holds  90  per  cent  of  his  motormen 
and  conductors. 

Private  Companies  and  Municipal  Councils 

The  foregoing  is  a  review  of  several  interests  which 
have  been  discovered  as  tending  to  weaken  the  efficiency 
and  integrity  of  municipalities  in  the  operation  or  regu- 
lation of  monopolies,  together  with  the  factors  that  tend 
to  correct  these  evil  tendencies.  In  inquiring  into  the 
part  played  by  all  of  them,  including  saloon  keepers, 
real  estate  speculators,  party  politicians  and  municipal 
employees,  the  most  impressive  fact  in  Great  Britain 
is  the  absence  of  any  political  "  machine  "  which  could 
bring  them  together  and  line  them  up  under  a  central- 
ized control.  Whatever  corrupting  or  incapacitating 
tendencies  there  may  be  in  these  several  interests  that 
come  into  conflict  with  good  administration,  each  works 
by  itself,  and  there  is  no  permanent  interest  or  class  of 
manipulators  which  thrives  by  marshalling  them  together 
in  a  perpetual  onslaught  and  undermining  of  the  city 
government.  Public-spirited  and  independent  citizens 
are  not  compelled  to  enter  into  bargains  nor  to  make 
promises  to  a  political  organization,  which  would  dis- 


LABOR  AND   MUNICIPAL   POLITICS         179 

gust  them  with  a  position  on  the  Town  Council.  This 
absence  of  a  powerful  machine  is  mainly  due  to  the  fact 
that  there  are  no  great  financial  bargains  at  stake,  such 
as  municipal  contracts  or  franchises,  whose  owners 
have  a  direct  interest  in  breaking  down  city  government. 
None  of  the  menacing  factors  above  mentioned  is  large 
enough,  and  all  of  them  combined  cannot  gain  enough, 
to  warrant  them  in  making  large  contributions  to  an 
expensive  organization  for  the  control  of  elections  and 
appointments.  The  brewery  interest  is  practically  the 
only  interest  of  financial  importance  whose  profits  can 
be  menaced  by  acts  of  the  Council,  but  the  menace  to 
it  is  based  on  moral,  and  not  financial,  grounds.  In 
resisting  this  menace  it  does  not  directly  attack  the 
business  integrity  of  the  Council,  but,  more  important, 
there  is  no  opportunity  for  it  to  make  an  alliance  with 
contractors  and  franchise  speculators  who  could  in- 
crease their  profits  and  make  sharper  bargains  with  the 
city  if  the  councillors  were  weak  or  corrupt,  or  under 
the  control  of  a  machine  which  they  must  support. 
The  absence  of  powerful  financial  opponents  of  good 
government  leaves  the  way  open  for  business  men  to 
enter  the  councils  and  to  attack  abuses  or  defend  the 
interests  of  the  city  without  risking  their  private  business 
or  antagonizing  their  social  circle.  The  eminent  bankers, 
financiers  and  merchants  who  serve  the  cities  as  alder- 
men on  the  finance  committees  are  free  to  do  so  because 
neither  they  nor  their  clients  or  business  associates 
are  interested  in  stocks  which  might  be  depreciated  if 
they  helped  the  city  to  drive  a  good  bargain.  These, 
men  are  often  the  directors  in  large  manufacturing,  rail- 
way and  other  private  companies.  Councillors  and 
aldermen  on  the  gas,  water,  electricity  and  tramways 


i8o  LABOR  AND  ADMINISTRATION 

committees  are  even  stockhloders  and  directors  in  pri- 
vate gas  and  water  companies  of  other  towns.  It  would 
be  impossible  for  such  men  to  act  conscientiously  on  the 
great  board  of  municipal  directors,  and  to  give  the  town 
the  same  kind  of  service  as  they  give  to  their  private 
companies,  if  they  or  their  business  associates  were 
interested  in  companies  which  had  business  relations 
with  the  Council.  Neither  could  the  medium  and 
smaller  business  men  and  employers  afford  to  accept 
positions  on  the  councils  and  take  the  independent 
stand  they  do,  if  the  bankers  and  large  business  men  on 
whom  they  depend  for  credits  and  sales  were  interested 
in  the  stocks  of  franchise  companies.  With  these  great 
antagonistic  interests  out  of  the  way,  the  business 
men  of  the  town  find,  not  only  that  their  private  busi- 
ness is  not  menaced,  but  that  the  conditions  of  all 
private  business  are  greatly  improved,  if  they  lend 
their  abilities  to  the  improvement  of  municipal  business. 
The  time  which  they  take  from  their  private  affairs  is 
often  not  even  a  business  sacrifice.  The  honor  and 
distinction  of  public  service  on  the  council  is  really  an 
advertising  asset  in  their  private  business.  It  would  be 
a  liability  if  they  were  called  upon  to  antagonize  large 
financial  interests. 

I  do  not  hold  that  the  contrast  in  American  cities 
gives  evidence  that  the  private  corporations  which  we 
have  investigated  have  taken  the  initiative  in  corrupt- 
ing and  weakening  the  municipal  councils.  The  initia- 
tive has  just  as  often  come  from  corrupt  officials  who 
"  hold  up  "  the  corporations.  The  real  question  is  not, 
Who  is  to  blame?  or,  Is  it  blackmail  or  is  it  bribery? 
but  the  real  question  is,  What  is  the  situation  that  com- 
pels officials,  campaign  committees  and  corporations 


LABOR  AND   MUNICIPAL   POLITICS         181 

to  resort  to  blackmail  and  bribery  ?  Plainly  by  compari- 
son of  American  and  British  cities  the  answer  is  found 
in  the  enormous  profits  at  stake  on  municipal  elections. 

It  is  the  absence  of  a  political  machine  and  its  finan- 
cial contributions  that  also  makes  possible  the  election 
in  British  cities  of  remarkable  groups  of  Labor  coun- 
cillors. With  but  few  exceptions  the  labor  members 
are  representative  of  the  best  elements  of  the  trade 
unions.  Although  they  lack  the  financial  experience  of 
business  men  they  contribute  a  valuable  knowledge  of 
labor  conditions  on  which  successful  management  of 
municipal  undertakings  depends.  Men  of  their  integ- 
rity and  earnestness  have  the  opportunity  to  come  for- 
ward because  the  trade  unions  are  not  undermined  nor 
their  leaders  bribed  by  the  paid  agents  of  a  political 
machine.  And  the  financial  interests  that  would  profit 
by  the  election  of  weak  or  dishonest  labor  candidates 
are  not  powerful  enough  to  sudsidize  the  astute  agents 
needed  by  the  machine  for  the  purpose. 

A  contrast  with  this  situation  appears  in  two  of  the 
places  visited  where  private  companies  operate  public 
utilities.  The  municipal  council  of  Newcastle-on-Tyne 
is  decidedly  inferior  in  quality  and  ability  to  others, 
and  two  of  the  leading  financiers  on  the  council  declared 
that  their  only  reason  for  remaining  in  the  position  is 
the  election  which  the  council  gives  them  as  corporation 
representatives  on  the  Tyne  Improvement  Commis- 
sion. The  presence  of  private  gas,  electricity  and 
water  companies,  with  their  representatives  in  the 
council,  prevents  the  leading  business  men  from  inter- 
esting themselves  in  the  success  of  the  municipal  govern- 
ment, while  an  equivocal  class  of  labor  agitators  takes 
advantage  of  the  situation  to  get  elected  to  the  council. 


i82  LABOR  AND  ADMINISTRATION 

Sheffield,  also,  with  its  influential  gas  company,  is  the 
only  town  visited  where  the  employees  in  the  tramway 
and  street  departments  are  appointed  through  the 
influence  of  councillors.  In  that  town  there  is  a  peculiar 
inducement  for  the  eminent  business  men  in  charge  of 
the  gas  company  to  look  with  approval  on  the  election 
of  inferior  councillors,  because  the  council  elects  three 
of  its  members  as  directors  of  the  company.  The 
strength  of  the  company  is  seen  in  the  incompetency  of 
these  municipal  directors,  who  are  kept  in  ignorance  of 
essential  details  in  its  affairs.  With  councillors  of  this 
inferior  type  and  with  the  indifference  of  business  men 
to  the  management  of  municipal  affairs,  the  result  is 
seen  in  the  absence  of  any  protest  against  practices 
which  are  undermining  the  municipal  undertakings. 

Certain  effects  of  the  municipal  ownership  movement 
in  Great  Britain  on  the  private  companies  are  evident. 
The  Sheffield  Company,  under  the  far-seeing  manage- 
ment of  Sir  Frederick  Mappin,  has  directed  its  policy 
for  many  years  with  the  distinct  purpose  of  meeting  the 
arguments  for  municipal  ownership.  To  avoid  agitation 
it  has  refrained  from  going  to  Parliament  for  permission 
to  increase  its  capital  stock.  Consequently  it  has  dis- 
tributed its  large  surplus  profits  in  the  form  of  reduced 
prices  for  gas  and  betterments  to  its  plant.  Most  in- 
structive of  all  is  the  attitude  of  the  companies  toward 
their  employees.  With  the  sentiment  of  municipal 
ownership  ready  to  explode,  the  companies  cannot  afford 
to  risk  a  strike.  The  Newcastle  gas  company  has  met 
this  situation  by  a  willing  recognition  of  the  gas  workers' 
union  and  by  a  resort  to  arbitration  through  which  wages 
have  been  materially  raised.  The  South  Metropolitan 
Company  has  developed  its  co-partnership  scheme  with 


LABOR  AND   MUNICIPAL   POLITICS         183 

astonishing  shrewdness  and  careful  attention  to  details, 
so  that  every  disaffected  workman  is  silent  or  dismissed. 
The  Sheffield  Company,  although  its  president  had 
openly  attacked  and  wrecked  trade  unions  in  his  private 
business,  contented  itself  with  gradually  undermining 
the  gas  workers'  union,  through  the  payment  of  wages 
and  bonuses  superior  to  those  paid  by  other  private 
employers  of  the  district,  and  even  in  the  case  of  unskilled 
labor,  superior  to  those  paid  by  the  municipal  corpora- 
tion of  Sheffield. 

Trade  Unions  and  Wages 

The  influence  of  wage-earners  through  their  unions 
upon  the  conditions  of  municipal  employment  in  the 
United  States  has  been  complicated  through  the  pres- 
ence and  activity  of  practical  politicians.  In  the  munici- 
pal enterprises  investigated,  except  South  Norwalk  and 
Richmond,  the  eight-hour  day  has  been  established  for 
the  past  ten  or  fifteen  years  for  all  employees,  whereas, 
in  the  private  companies  the  hours  are  longer  or  have 
more  recently  been  reduced  for  a  portion,  but  not  all,  of 
their  employees  in  the  more  skilled  branches  of  work. 
This  advantage  in  municipal  undertakings  has  been 
brought  about,  not  by  a  definite  labor  party,  but  by  the 
influence  of  wage-earners  as  voters  upon  the  municipal 
officials. 

A  curious  contrast,  however,  presents  itself  in  the 
wages  paid  by  contractors  on  municipal  work.  While 
the  larger  cities  in  their  own  employment  reduced  the 
hours  several  years  before  similar  reductions  were  made 
by  British  municipalities,  yet,  unlike  the  British  munic- 
ipalities, provision  was  not  made  requiring  contractors 
on  municipal  works  to  observe  the  hours  and  wages  paid 


184  LABOR  AND  ADMINISTRATION 

by  the  municipalities  themselves.  It  has  only  been 
within  the  past  five  or  six  years  that  a  definite  move- 
ment was  undertaken  by  the  wage-earning  element  to 
extend  these  provisions  to  contractors,  and  this,  on 
account  of  adverse  decisions  of  the  courts,  led  to  the 
adoption  in  New  York  of  a  constitutional  amendment  in 
1905  stipulating  that  the  prevailing  rate  of  wages  should 
be  paid  by  contractors  on  the  work  of  the  State  or  its 
subdivisions.  This  clause  has  recently  been  adopted 
by  the  city  of  Chicago.  The  hand  of  the  politician  is 
seen  in  formerly  omitting  contractors  from  require- 
ments respecting  wages  and  hours,  since  by  this  device 
he  was  able  to  win  both  the  wage-earners  and  the  con- 
tractors to  his  support.  But  with  the  more  extensive 
organization  of  wage-earners  and  their  independence 
of  the  politicians,  the  contractors  are  placed  on  the  same 
basis  as  the  municipality. 

In  only  one  case  investigated  in  the  United  States  is 
there  a  formal  trade  agreement  between  the  union  and 
a  municipal  department,  namely,  that  of  the  electricity 
department  of  Chicago,  but  since  permanent  appoint- 
ments in  that  and  other  departments  of  Chicago  are 
controlled  by  the  Civil  Service  Commission,  the  effect 
of  this  agreement  is  to  control  only  the  temporary  or 
sixty-day  appointments.  The  unions,  however,  are 
recognized  by  the  Civil  Service  Commission  to  the  extent 
that  an  officer  of  the  union  concerned  is  appointed  as  one 
of  the  three  members  of  the  examining  board  which 
passes  upon  applicants  for  municipal  positions.  The 
other  two  members  are  employers  or  technical  experts 
selected  by  the  commission  outside  the  municipal  service. 
The  consequence  of  this  arrangement  is  that  the  unions 
are  satisfied  that  the  civil  service  law  is  honestly  ad- 


LABOR  AND   MUNICIPAL  POLITICS         185 

ministered,  and,  at  the  same  time,  the  non-union  work- 
men are  protected  against  discrimination.  In  Great 
Britain  there  are  two  undertakings,  Birmingham  gas 
and  Manchester  tramways,  which  have  trade  agree- 
ments with  the  unions,  and  in  all  other  places  the  same 
result  is  reached  by  the  provision  requiring  the  payment 
of  trade-union  rates  of  wages. 

The  municipal  undertakings  in  both  countries  are 
necessarily  "  open  shop,"  in  the  sense  that  employment 
is  open  both  to  union  and  non-union  men.  In  the  case 
of  the  more  skilled  trades  this  usually  results  in  the 
employment  of  union  men,  depending  partly  on  the  atti- 
tude of  the  manager.  This  attitude  is  favorable  to  the 
unions  in  all  of  the  British  municipalities  except  Liver- 
pool and  is  favorable  in  the  American  cities  of  Cleveland, 
Detroit  and  Chicago.  In  these  places  the  managers 
consult  the  union  officers  in  arranging  wages,  hours 
and  conditions  of  work.  The  three  American  places 
mentioned  are  those  where  the  political  machine,  sup- 
ported by  the  contractors  and  franchise  corporations, 
has  been  eliminated  from  the  control  of  the  city  govern- 
ment by  a  popular  revolt  against  the  corporations.  But 
in  Allegheny,  Syracuse,  Wheeling  and  Indianapolis,  where 
a  combination  of  politicians  and  franchise  corporations 
is  in  control  of  the  municipal  government,  the  attitude 
is  distinctly  hostile  to  the  unions,  and  appointments  and 
promotions  are  made  with  reference  to  the  political 
adherence  of  the  employees.  The  exception  to  this 
statement  is  found  in  the  Allegheny  electric  undertaking 
to  the  extent  that  the  Electrical  Workers'  Union  has 
organized  the  linemen.  In  this  case  appointments  are 
not  made  on  political  grounds  and  the  linemen  do  not 
pay  the  assessments  required  of  other  employees.  Of 


186  LABOR  AND  ADMINISTRATION 

the  private  companies  investigated  in  Great  Britain,  all 
of  them  except  one  were  hostile  to  union  labor.  The 
exception  is  the  Newcastle  gas,  which  has  had  open-shop 
agreements  with  a  gas  workers'  union  during  seventeen 
years.  In  the  United  States  all  of  the  private  companies 
are  hostile  to  union  labor.  Most  of  the  companies  in 
both  countries  protested  that  they  were  not  hostile, 
while  only  one  asserted  positively  that  it  was,  but  the 
acts  and  policies  of  all,  except  Newcastle  gas,  as  shown 
by  our  investigations,  demonstrate  their  hostility. 

Minimum  Wages 

In  the  matter  of  wages  and  hours  the  principal  effect 
of  municipal  ownership  is  seen  in  the  unskilled  and  un- 
organized labor  in  both  countries,  in  that  of  street 
railway  employees  in  Great  Britain,  and  in  that  of  gas 
workers  and  electric  workers  in  the  United  States. 

The  policy  of  all  of  the  British  municipalities  is  to 
place  the  minimum  wages  of  common  labor  at  the  level 
paid  by  the  best  private  employers  for  similar  work. 
This  is  about  1 5  per  cent  to  40  per  cent  higher  than  other 
private  wages  for  the  same  class  of  labor  in  the  same 
locality.  The  greatest  difference,  that  of  Leicester,  was 
the  result  of  arbitration,  brought  about  through  the 
organization  of  common  labor  in  that  town.  In  this 
case  those  private  employers  who  recognized  the  union 
paid  the  same  wages  as  the  municipality.  In  one 
locality,  Sheffield,  the  minimum  wage  paid  by  the  gas 
company  is  higher  than  the  minimum  paid  by  the  munic- 
ipality and  other  private  employers,  and  the  gas  com- 
pany at  Newcastle  pays  its  organized  common  labor 
the  same  minimum  as  the  municipality,  but  all  of  the 
electric  and  tramway  companies  pay  less  for  common 


LABOR  AND   MUNICIPAL  POLITICS         187 

labor  doing  the  same  kind  of  work   than  the  munici- 
palities in  which  they  are  located. 

In  the  United  States  the  minimum  paid  for  common 
labor  by  the  private  companies  is,  in  all  cases  except 
Atlanta,  lower  than  that  of  the  municipality,  and  the 
minimum  paid  for  common  labor  by  municipal  undertak- 
ings is  higher  than  that  of  private  companies  of  the  same 
locality.  The  correspondence  runs  as  follows :  Syracuse, 
municipal  $1.50  for  eight  hours,  private  $1.50  for  ten 
hours ;  Detroit,  municipal  $1.75  for  eight  hours,  private 
$1.80  for  nine  hours;  Allegheny,  municipal  $2.75  for 
eight  hours,  private  $1.75  for  ten  hours;  Wheeling, 
municipal  $1.85  for  eight  and  nine  hours,  private  $1.85 
for  ten  hours ;  Cleveland,  municipal  $1.76  for  eight  hours, 
private  $1.75  for  ten  hours;  Indianapolis,  municipal 
$1.60  for  eight  hours,  private  $1.50  for  ten  hours; 
Chicago,  municipal  $2.00  for  eight  hours,  private  $1.75 
for  ten  hours;  New  Haven,  municipal  $1.50  for  eight 
hours,  private  $1.50  for  nine  hours;  Richmond,  munic- 
ipal $2.00  for  nine  hours,  private  $1.20  for  nine  hours; 
Atlanta,  municipal  and  private  $1.00  for  ten  hours. 

These  are  the  minimum  rates  and  not  the  average 
rates,  nor  the  highest  rates  paid  for  unskilled  and  usually 
unorganized  labor.  In  this  respect  the  municipalities, 
both  in  Great  Britain  and  the  United  States,  have 
adopted  the  trade  union  principle  of  the  minimum  wage 
for  that  class  of  labor  which  ordinarily  has  no  union, 
and  all  of  the  familiar  arguments  for  and  against  the 
theory  of  the  minimum  wage  as  applied  to  trade  unions 
can  be  brought  forward  as  applied  to  the  municipalities. 
Against  the  minimum  wage  theory  is  the  criticism  that 
it  shuts  out  from  employment  the  old  men  who  are 
not  worth  the  minimum  wage.  The  private  companies 


i88  LABOR  AND  ADMINISTRATION 

investigated,  which  pay  less  than  the  minimum,  of  course, 
justify  it  on  the  ground  that  the  Italians,  negroes  and 
others  employed  are  not  worth  the  minimum,  but  the 
trade  unionist  usually  tells  them  that  by  paying  the 
minimum  they  would  attract  better  workmen.  So 
far  as  our  investigations  have  gone,  they  show  that  in 
municipal  employment  this  has  been  the  case.  Since 
the  adoption  of  the  minimum  wage  policy,  enforced 
sometimes  by  civil  service  rules,  the  quality,  character, 
physique  and  efficiency  of  the  common  labor  employed 
by  municipalities  has  been  greatly  improved,  and  munic- 
ipal employment  has  ceased  to  be  looked  upon  as  an 
old-age  pension  for  laborers  worn  out  in  private  employ- 
ment. This  is  a  hardship  to  individuals  to  the  same 
extent  that  trade  unionism  is  a  hardship  to  individuals. 
But  from  the  standpoint  of  the  municipality  it  is  a  gain, 
because  more  competent  laborers  are  employed,  and 
municipal  employment  is  clearly  distinguished  from 
municipal  charity.  The  aged  and  inefficient  laborers, 
discharged  from  private  employment,  and  unable  to 
secure  municipal  employment,  must,  of  course,  be  sup- 
ported from  the  public  treasury,  and  it  is  a  significant 
fact  that  the  movement  for  old-age  pensions  as  a  sub- 
stitute for  the  poor-house  in  Great  Britain  has  been 
strengthened  by  the  minimum  wage  policy  of  the  past 
ten  years,  which  has  relieved  .municipal  employment  of 
its  poor-house  features. 

In  all  of  the  occupations  where  organized  labor  was 
found,  the  policy  of  all  of  the  municipalities  investigated, 
except  South  Norwalk,  is  that  of  paying  the  trade-union 
rate.  This  is  also,  of  course,  a  minimum  rate  and  the 
conditions  are  the  same  as  those  governing  private 
employers  of  the  locality  who  .recognize  .the  union.  A 


LABOR  AND   MUNICIPAL  POLITICS         189 

few  cases  of  individuals  were  found  where  the  city  was 
paying  individuals  less  than  the  unions,  but  these  were 
cases  in  which  the  union  had  granted  a  permit  to  work 
below  the  scale  on  account  of  old  age,  or  were  cases  over 
which  a  dispute  as  to  the  character  of  the  work  was  in 
process  of  adjustment,  or  where,  as  in  Chicago,  wages 
in  private  employment  had  been  advanced  after  the 
municipal  budget  had  been  voted  and  the  latter  could 
not  under  the  law  be  changed  until  the  next  fiscal  year. 
We  have  not  found  any  instance,  except  that  of  the 
Municipal  Employees'  Association  in  Great '  Britain, 
above  mentioned,  where  the  unions  have  demanded 
higher  minimum  wages  of  the  municipality  than  those 
paid  by  union  employers.  Individuals,  both  in  munici- 
pal and  private  undertakings,  get  higher  wages  than  the 
union  minimum. 

Outside  the  ranks  of  unskilled  labor  in  Great  Britain 
the  principal  difference  between  wages  in  municipal  and 
private  undertakings  is  found  in  the  case  of  the  motormen 
and  conductors  on  tramways.  This  has  been  brought 
about  by  a  reduction  in  the  hours  of  labor  in  municipal 
employment,  so  that  in  two  municipal  undertakings, 
Glasgow  and  Manchester,  the  hours  have  been  reduced 
to  54  per  week,  and  in  two  others,  the  Liverpool  and 
London  County  Council,  to  60  per  week,  while  in  the 
three  private  undertakings  the  hours  are  70  per  week. 
Since  the  wages  have  not  been  decreased  the  result  is 
seen  in  the  rate  of  pay  per  hour.  Taking  the  London 
County  Council  Tramways  and  the  London  United 
Tramways,  where  comparisons  can  fairly  be  made, 
since  both  are  in  the  same  town,  the  wages  for  motormen 
are  4.2  per  cent,  and  for  conductors  30  per  cent  higher 
.on  the  municipal  than  on  the  private  system.  Out- 


190  LABOR  AND  ADMINISTRATION 

side  London,  considering  the  local  levels  of  wages,  the 
municipal  undertakings  pay  higher  wages  than  the 
private  undertakings.  This  difference  is  not  owing  to 
the  change  from  horse  to  electrical  traction,  since  the 
wages  on  the  municipal  undertakings  were  advanced 
when  the  municipality  secured  possession,  which  in  the 
case  of  Glasgow  was  six  years  before  electrical  traction 
was  adopted.  The  private  companies,  although  pay- 
ing less  than  the  municipalities,  have  also  advanced 
their  rates  of  pay  with  the  introduction  of  electrical  trac- 
tion. The  same  is  true  of  the  traction  companies  in  the 
United  States,  although  our  investigations  have  not 
included  a  survey  of  these  companies,  and  we  are  un- 
able to  make  a  statistical  comparison. 

In  the  case  of  gas  workers  employed  by  the  munici- 
palities and  private  companies  in  Great  Britain  it  has 
been  found  that,  with  the  exception  of  the  South  Metro- 
politan Company,  there  is  not  much  difference  between 
the  wages  paid  in  the  two  classes  of  undertakings.  The 
differences  observed  in  this  occupation  grow  out  of  the 
amount  of  work  required  of  the  stokers.  On  account 
of  the  severity  of  the  work  it  is  the  practice  both  of  the 
private  companies  and  the  municipal  undertakings  in 
the  United  States  to  require  the  stokers  to  work  actually 
only  one-half  of  the  number  of  hours  for  which  they 
are  paid,  the  other  half  being  available  for  recreation. 
This  is  true  also  in  three  of  the  municipal  undertakings 
in  Great  Britain,  while  in  the  fourth,  Glasgow,  the 
stokers  work  five  hours  out  of  the  eight  instead  of  four. 
In  this  respect  Glasgow  is  on  the  same  basis  with  the 
most  favorable  of  the  private  companies,  Newcastle, 
where,  on  account  of  the  presence  of  a  strong  labor  organ- 
ization, the  stokers  also  are  on  the  basis  of  five  hours' 


LABOR  AND   MUNICIPAL   POLITICS         191 

work  for  eight  hours'  pay.  In  the  other  two  private 
companies,  which  have  succeeded  in  destroying  the  labor 
organizations  that  formerly  existed,  the  amount  of  work 
required  of  the  men  has  been  increased  to  a  greater 
degree  than  the  increase  of  wages.  So  severe  was  this 
hardship  on  the  employees  of  the  South  Metropolitan 
Company  that  in  two  of  the  stations  they  voted  to  accept 
the  proposition  of  the  company  to  return  to  the  twelve- 
hour  day  and  to  forego  the  advantages  of  the  eight-hour 
day,  which  they  had  secured  through  their  union  in 
1889.  By  increasing  slightly  the  total  amount  of  work 
in  the  twelve-hour  shift  they  increased  their  total  daily 
wages,  but  the  cost  of  labor  to  the  company  is  the  same 
on  the  twelve-hour  basis  as  it  is  in  the  other  stations  on 
the  eight-hour  basis.  Measuring  their  wages,  however, 
by  the  hour,  the  men  on  the  twelve-hour  basis  receive 
the  lowest  rates  of  pay  of  all  the  private  and  municipal 
undertakings.  This  twelve-hour  system,  resulting  from 
the  smashing  of  the  union  and  the  overwork  of  the 
employees,  is  approved  in  some  quarters  as  a  "  genuine 
example  of  cooperation/' 

At  the  other  extreme  the  least  amount  of  work  re- 
quired of  stokers  is  in  the  municipal  undertaking  at 
Manchester,  and  there  the  reduction  in  the  amount  of 
work  has  been  criticised  as  indicating  a  detrimental 
influence  of  trade  unions  upon  the  municipal  undertak- 
ing. A  question  of  this  kind  must  be  decided  according 
to  the  opinions  of  the  investigators.  Looking  at  the 
severity  of  the  work  it  would  be  unwarranted  to  say  that 
the  stokers  in  the  Manchester  municipal  undertaking 
are  doing  a  smaller  amount  of  work  than  should  be  fairly 
required  of  them.  An  important  consequence  of  the 
policy  of  the  Manchester  municipality,  in  its  effort  to 


192  LABOR  AND  ADMINISTRATION 

avoid  overworking  the  stokers,  is  seen  in  its  effort  greatly 
to  improve  the  equipment  of  the  plant  in  order  to  reduce 
the  amount  of  labor  required,  the  net  result  being  that 
the  labor  cost  in  Manchester  is  not  greater  than  in 
other  places. 

In  the  United  States  the  gas  workers  are  on  the 
twelve-hour  day  at  Richmond  and  Atlanta,  but  in  the 
municipal  plant  at  Wheeling  all  employees  have  the  eight- 
hour  day,  while  with  the  private  company  at  Philadel- 
phia the  shift  men  in  the  retort  house  were  placed  on 
the  eight-hour  day  when  the  company  took  possession. 
They  had  worked  twelve  hours  under  municipal  owner- 
ship. The  wages  paid  by  the  Richmond  municipal 
plant,  all  of  whose  employees  are  whites,  are  90  per 
cent  to  100  per  cent  higher  than  the  wages  paid  to 
negroes  who  do  similar  work  in  the  Atlanta  private 
undertaking,  and  the  wages  paid  to  white  mechanics 
and  apprentices  at  Richmond  are  30  per  cent  to  120 
per  cent  higher  than  those  paid  to  the  corresponding 
white  employees  by  the  Atlanta  company.  In  one 
occupation,  that  of  the  bricklayer,  the  wages  in  the  two 
places  are  the  same. 

In  the  electric  industries  in  Great  Britain,  outside  of 
employment  of  unskilled  labor,  there  does  not  appear 
to  be  any  material  difference  in  the  rates  paid  by  the 
municipalities  and  the  private  companies  taken  as  a 
whole.  It  was  not  possible  to  make  an  exact  comparison 
on  account  of  the  differences  in  classification  and  the 
wide  range  of  wages,  depending  partly  upon  the  size 
of  the  undertaking.  Such  differences  as  were  found 
to  exist  between  municipal  and  private  undertakings 
might  be  explained  upon  the  basis  of  the  differences  in 
the  level  of  wages  in  the  several  localities. 


LABOR  AND  MUNICIPAL   POLITICS         193 

In  the  United  States  in  all  cases,  except  South  Norwalk 
and  Detroit,  the  wages  paid  by  the  municipal  electric 
undertakings  are  materially  higher  than  those  paid  by 
the  private  undertakings  of  the  same  localities.  The 
widest  difference  is  found  in  Allegheny  and  in  Chicago. 
The  only  positions  in  which  the  private  electrical  com- 
panies of  Chicago  pay  as  high  wages  for  similar  work 
as  the  municipal  undertaking  is  that  of  a  small  number 
of  their  wire-men,  who  work  alongside  the  other  organized 
building  trades  of  the  city.  Their  other  wire-men  doing 
the  same  work  get  less  pay. 

In  the  matter  of  "  welfare  work,"  or  provision  for  the 
comfort,  cleanliness  and  recreation  of  employees,  the 
best  conditions  were  found  in  the  works  of  the  Common- 
wealth Electric  Company  at  Chicago,  the  municipal 
water-works  at  Cleveland,  the  Philadelphia  gas-works, 
the  municipal  gas  at  Leicester,  municipal  trams  at 
Glasgow  and  Liverpool  and  South  Metropolitan  gas 
at  London.  The  worst  conditions  were  at  Wheeling 
and  Richmond  municipal  gas  and  Sheffield  private  gas. 
In  general,  the  buildings  and  works  constructed  during 
the  past  four  or  five  years  both  in  private  and  munici- 
pal undertakings,  show  a  great  improvement  over  the 
older  buildings  and  works,  in  the  provision  for  baths, 
lavatories,  lunch  and  cooking  rooms,  recreation  rooms 
and  grounds.  Taking  the  entire  list  of  properties  visited, 
the  best  under  one  form  of  ownership  is  equalled  by  the 
best  under  the  other  form,  and  so  on  down  to  the 
worst.  The  superior  character  of  the  municipal  under- 
takings over  private  undertakings  in  Great  Britain  is 
partly  owing  to  their  more  recent  construction,  and  the 
converse  is  true  in  the  United  States. 

In  Great  Britain,  but  not  in  the  United  States,  were 


LABOR  AND  ADMINISTRATION 

found  systems  of  insurance,  thrift  funds,  sick,  death  and 
accident  benefits,  both  in  municipal  and  private  under- 
takings. The  most  extensive  and  elaborate  of  these  is 
that  of  the  South  Metropolitan  Company,  connected 
with  its  system  of  profit  sharing  and  compulsory  invest- 
ment of  profits  in  the  company's  stocks.  This  system 
is  ingeniously  contrived  to  destroy  the  gas  workers' 
union  by  subjecting  its  employees  to  the  conspiracy 
laws,  and  to  enable  the  company  to  "  contract  out " 
from  the  Workmen's  Compensation  laws.  The  munici- 
pal gas-works  of  Glasgow  has  copied  the  system  so  far 
as  it  relates  to  profit  sharing  and  conspiracy,  but  not 
to  workmen's  compensation.  All  other  municipal  and 
private  establishments  pay  accident  benefits  as  required 
by  this  national  legislation. 


CHAPTER  XIII 

THE  MILWAUKEE  BUREAU  OF  ECONOMY  AND  EFFICIENCY1 

[It  is  significant  that  the  first  official  attempt  on  the  part  of  an  i 
American  municipality  to  install  a  complete  system  of  business 
administration  was  made  by  the  socialists  of  Milwaukee  during 
their  brief  control  of  the  city  council  and  mayor's  department  in 
1910  to  1912.  The  plan  was  ambitious  and  comprehensive.  It 
had  to  overcome  all  of  the  obstacles  and  rule-of-thumb  traditions 
of  subordinate  employees  that  have  blocked  this  kind  of  work 
in  every  city  where  it  has  been  attempted.  It  required  at  least 
a  year  for  the  socialists  themselves  to  learn  the  "team  work" 
necessary  to  get  results.  Finally,  when  the  installation  of  the 
system  seemed  to  lag  unaccountably,  they  created  a  "put-over" 
committee  selected  from  the  common  council  and  composed  of  a 
machinist,  a  paper-hanger  and  a  die-sinker.  This  committee 
divided  up  its  work,  took  hold  of  each  executive  department  and 
put  through  the  installation  until  stopped  by  the  elections.  The 
following  report,  written  at  the  end  of  the  socialist  administra- 
tion in  April,  1912,  sketches  in  brief  the  work  as  it  stood  at  that 
time.  The  non-partisan  administration  that  followed  discon- 
tinued the  staff  of  the  Bureau  of  Economy  and  Efficiency,  but 
afterwards  created  a  Bureau  of  Municipal  Research,  similar  to 
the  "mayor's  eye"  referred  to  below.  Most  of  the  work  of  thej 
former  Bureau  has  been  retained,  and  the  new  Bureau  is  continu-j 
ing  its  unfinished  work.  A  Citizens'  Bureau  supported  by  private] 
contributors,  as  suggested  below,  is  also  in  process  of  organiza- 
tion, to  aid  and  criticise  the  municipal  administration. 

That  a  group  of  trade  unionists  and  socialists,  without  experi- 
ence in  business  management,  and  handicapped  by  their  belligerent 
notions  of  "class  struggle,"  should  have  set  themselves  to  the 

1  Published  as  Bulletin  No.  19,  Milwaukee,  Wis.,  April  15,  1912,  under 
the  title  "Eighteen  Months'  Work  of  the  Milwaukee  Bureau  of  Economy 
and  Efficiency." 

195 


196  LABOR  AND   ADMINISTRATION 

serious  study  and  vigorous  support  of  this  dry  programme  of  modern 
business,  goes  far  to  justify  the  demand  of  labor  for  at  least  an 
equal  share  with  business  in  the  control  of  government.  The 
Voters'  League,  a  non-socialist  organization,  amidst  condemnation 
of  certain  other  practices,  had  the  following  to  say  to  the  voters 
of  Milwaukee  at  the  time  of  the  election: 

"The  Bureau  of  Economy  and  Efficiency,  inaugurated  by  the 
present  administration  has,  we  believe,  justified  its  establishment, 
and  is  deserving  of  commendation. 

"  Its  principal  investigations  and  recommendations  have  been 
(i)  the  consolidation  of  the  fire  and  police  alarm  telegraph  sys- 
tems, adopted  by  the  council  (23  to  9)  against  the  opposition  of  the 
respective  chiefs,  (2)  the  consolidation  of  the  plumbing  and  house 
drain  inspectors,  adopted  by  unanimous  vote  of  the  council,  (3) 
a  complete  new  system  of  accounting  for  the  water  department 
now  being  installed,  (4)  utilization  of  by-products  at  the  garbage 
incinerator,  (5)  reorganization  of  garbage  collection  systems, 
(6)  cost  unit  systems  for  the  incinerator,  garbage  and  ash  collec- 
tions, street  sprinkling,  oiling  and  flushing,  and  the  inspection 
of  plumbing  and  house  drains,  and  (7)  a  general  reorganization 
of  the  health  department  based  on  special  reports  of  six  principal 
subdivisions. 

"  The  bureau's  report  on  utilization  of  steam  now  going  to  waste 
at  the  incinerator  is  not  in  the  nature  of  a  reported  discovery,  but 
is  the  result  of  a  study  of  methods  taken  up  where  the  designers 
of  the  incinerator  left  off. 

"  Other  recommendations  ready  for  action  by  the  council  include 
a  general  city  organization  plan  with  complete  accounting  and 
cost  unit  systems.  Special  reports  are  completed  on  the  subjects 
of  water  wastes,  electrolysis  of  water  mains,  efficiency  of  pumping 
stations  and  operation  of  the  high  service  water  system.  The 
bureau  has  also  been  engaged  in  arriving  at  the  actual  cost  of 
delivering  water,  and  so-called  social  studies  have  been  made  of 
the  following  subjects :  housing  conditions,  legal  aid  to  the  poor, 
garnishment  of  wages,  employment  bureaus,  workmen's  accidents 
and  women's  wages. 

"If  capably  managed,  the  bureau  should  continue  to  prove  a 
valuable  agency  in  promoting  efficiency  and  economy  in  municipal 
business."] 


MUNICIPAL   EFFICIENCY  197 

In  April,  1912,  the  Bureau  of  Economy  and  Efficiency 
completes  eighteen  months  of  work,  beginning  October, 
1910.  The  first  three  months  were  occupied  mainly 
with  planning  the  work,  engaging  the  staff,  and  enlist- 
ing the  cooperation  of  outside  agencies.  The  bulk  of 
the  detail  work  was  done  during  the  summer  of  1911, 
when  a  large  force  of  temporary  assistants  was  secured, 
and  the  work  of  installing  the  new  systems  was  well 
under  way  in  the  fall.  At  the  present  time  certain 
parts  of  the  work  have  been  completed  and  installed, 
parts  are  in  different  stages  of  investigation  and  instal- 
lation, while  other  parts  necessary  to  a  complete  system 
have  not  yet  been  undertaken.  The  incoming  of  a  new 
administration  makes  it  advisable  to  prepare  this  report 
upon  the  plans  and  work  of  the  bureau. 

The  Bureau  of  Economy  and  Efficiency  is  doing  for 
the  city  of  Milwaukee  what  is  being  done  for  great 
corporations  by  "  organization  "  and  "  efficiency " 
experts.  Cities,  like  corporations,  have  grown  up 
piecemeal,  by  adding  new  departments  or  positions  as 
needed  or  acquired.  Two  of  the  consulting  experts 
of  the  bureau,  to  whom  most  of  its  preliminary  work  has 
been  submitted,  are  Major  Charles  Hine,  formerly  or- 
ganization expert  of  the  Harriman  Railroad  Lines,  and 
Mr.  Harrington  Emerson?  Consulting  Efficiency  Rngi-  *v/vy 
neer,  of  New  York.  Major  Hine's  problem  has  been 
that  of  bringing  several  lines  or  railways,  formerly  inde- 
pendent, into  a  single  effective  system.  Mr.  Emerson 
is  called  in  by  many  great  corporations  for  similar  work 
and  for  working  out  the  details  of  organization.  Their 
problem  is  like  that  which  the  Milwaukee  bureau  found 
in  the  Public  Works  Department,  where  some  twenty 
different  subordinate  heads  reported  directly  to  the 


198  LABOR  AND   ADMINISTRATION 

Commissioner,  taking  up  all  of  his  time  with  details. 
Both  in  private  corporations  and  municipal  corporations, 
the  officials  are  compelled  to  attend  to  their  immediate 
daily  work  of  administration  just  as  it  has  been  handed 
down  to  them,  and  they  have  little  or  no  time  to  make  a 
thorough  study  of  the  system  which  buries  them.  For 
this  reason  it  has  been  found  necessary  to  bring  in  out- 
side experts  who  are  not  tied  down  by  details,  but  who  are 
familiar  with  successful  practice  elsewhere  and  can,  with 
the  cooperation  of  the  officials,  systematize  their  work. 

The  first  thing  done  by  the  Bureau  was  to  secure  a  staff 
of  consulting  experts  for  each  kind  of  work  that  had  to 
be  taken  up.  These  men  have  been  invaluable,  and 
have  gladly  assisted,  at  little  or  no  compensation  com- 
pared with  the  payments  they  have  received  from  pri- 
vate corporations  or  other  municipalities.  Without 
them  it  would  have  been  impossible  to  find  and  select 
an  expert  staff  of  men  for  the  bureau,  each  fitted  for 
the  special  kind  of  work  required.  These  consulting 
experts  have  criticised  and  passed  upon  all  of  the  pieces 
of  work  before  they  were  installed  or  published.  Backed 
by  this  criticism  and  approval,  the  directors  of  the  bureau 
could  confidently  recommend  and  publish  the  findings 
of  the  staff.  Besides  Major  Hine,  and  Mr.  Emerson 
already  mentioned,  Dean  F.  E.  Turneaure,  of  the  Col- 
lege of  Engineering,  the  University  of  Wisconsin,  has 
aided  on  all  engineering  work  and  the  selection  of  all 
engineering  experts. 

Dean  Russell  of  the  Agricultural  College  and  Experi- 
ment Station  has  practically  guided  the  work  on  Health 
and  Sanitation,  and  through  him  the  services  of  Pro- 
fessor W.  T.  Sedgwick,  head  of  the  Department  of 
Public  Health  and  Biology  of  the  Massachusetts  In- 


MUNICIPAL   EFFICIENCY  199 

stitute  of  Technology  were  secured.  Dean  Russell 
was  made  chairman  of  the  Milwaukee  Milk  Committee, 
which  was  created  to  have  special  supervision  over  that 
branch  of  health  work,  and  which  approved  of  the  milk 
report  before  its  adoption  by  the  bureau.  It  was  under 
these  auspices  that  Dr.  S.  M.  Gunn,  Professor  of  Public 
Health  at  the  Massachusetts  Institute  of  Technology, 
made  and  installed  a  plan  of  reorganization  of  the 
Health  Department  that  has  attracted  wide  comment 
and  approval  of  sanitarians. 

Dean  Louis  E.  Reber,  of  the  Extension  Division  of  the 
University  of  Wisconsin,  and  formerly  Dean  of  the 
College  of  Engineering,  Pennsylvania  State  College, 
has  aided  on  special  problems,  like  the  refuse  incinerator. 

In  the  accounting  and  cost-keeping  divisions  of  the 
bureau's  work,  Professor  S.  W.  Gilman  of  the  Univer- 
sity of  Wisconsin  has  been  depended  upon  for  a  large 
amount  of  detailed  consultation  with  the  staff  and  final 
approval  of  their  work. 

The  Chicago  Bureau  of  Public  Efficiency  contributed 
to  the  early  organization  of  the  Milwaukee  Bureau 
through  their  chief  experts,  Mr.  Peter  White  and  Mr. 
H.  R.  Sands.  These  gentlemen  had  been  with  the 
New  York  Bureau  of  Municipal  Research,  the  pioneer 
in  this  line  of  work,  for  several  years,  and  their  famil-' 
iarity  with  municipal  accounts  and  organization  made 
them  especially  valuable  in  enabling  the  Milwaukee 
staff  to  begin  right  and  to  get  early  results. 

In  the  second  year  of  its  work  the  bureau  undertook 
the  study  and  reorganization  of  the  Tax  Commissioner's 
office  in  cooperation  with  the  Commissioner  and  under 
the  guidance  of  T.  S.  Adams,  member  of  the  Wisconsin 
State  Tax  Commission. 


200  LABOR  AND  ADMINISTRATION 

The  social  survey  of  the  bureau  could  not  have  been 
carried  on  except  for  the  aid  given  by  Mr.  H.  H.  Jacobs 
of  the  University  Settlement.  Mr.  Jacobs  is  distin- 
guished among  settlement  workers  in  this  country  for 
his  active  share  in  most  of  the  public  movements  of  the 
city  for  the  betterment  of  social,  educational  and  indus- 
trial conditions. 

The  Milwaukee  bureau  is  unique  in  that  it  is  the  first 
i  one  of  the  kind  to  be  supported  mainly  by  the  city 
\  government  itself,  and,  secondarily,  by  private  contribu- 
tions. The  New  York  Bureau  of  Municipal  Research, 
now  in  its  seventh  year,  is  the  pioneer  bureau,  and  the 
men  who  got  their  training  in  its  work  have  taken  charge 
of  similar  work  in  Philadelphia,  Cincinnati,  Chicago, 
Memphis,  St.  Louis,  and  other  places,  as  well  as  the  work 
of  President  Taft's  inquiry  into  economy  and  efficiency. 
Since  the  Milwaukee  work  was  started  St.  Louis  has 
begun  the  same  work  in  the  Comptroller's  office,  and 
the  State  of  Wisconsin  has  created  a  Board  of  Public 
Affairs,  which  is  doing  the  same  for  the  state  govern- 
ment. 

v — 7  Other  bureaus  were  started  as  private  associations  to 
investigate  municipal  departments,  to  criticise,  to  pro- 
pose improvements,  and  to  inform  the  public  on  the 
actual  conditions.  But  as  soon  as  the  importance  of 
their  work  came  to  be  realized  and  favored  by  the  ad- 
ministration, they  were  taken  over,  to  a  greater  or  less 
extent,  by  the  city  department.  This  transfer  is  espe- 
cially notable  in  New  York,  where  an  existing  depart- 
ment, the  "  Commissioner  of  Accounts,"  usually  known 
as  "  the  Mayor's  eye,"  but  not  used  for  a  great  many 
years,  has  now  practically  become  the  municipal  section 
of  a  Bureau  of  Economy  and  Efficiency.  The  present 


MUNICIPAL   EFFICIENCY  201 

city  comptroller  and  certain  of  the  several  borough  de- 
partments have  also  taken  over  the  experts  and  methods 
of  the  New  York  bureau.  In  various  ways,  usually 
piecemeal,  different  cities  have  taken  up  this  kind  of 
work,  and  the  inquiries  received  by  the  Milwaukee 
bureau  for  men  and  methods,  from  widely  separate 
cities,  show  an  awakening  on  the  subject  throughout  the 
country. 

When  the  Milwaukee  bureau  was  started  it  was  im- 
possible to  secure  experts  who  had  previous  experience 
in  this  work  for  municipalities.  The  New  York  bureau 
has  been  drained  of  its  men  as  fast  as  they  were  trained, 
and  the  salaries  paid  in  these  different  cities  were  far 
ahead  of  anything  that  could  be  paid  in  Milwaukee. 
Added  to  this  was  the  temporary  and  uncertain  char- 
acter of  the  work  which  made  it  impossible  to  offer 
positions  of  more  than  a  few  months'  duration.  Judg- 
ing from  the  experience  of  other  cities  there  was  an 
estimate  made  in  April,  1910,  that  $50,000  was  as 
little  as  could  be  counted  upon  to  get  results  worth  while 
within  two  years.  The  bureaus  in  New  York  and 
Chicago  had  expended  $30,000  to  $100,000  a  year, 
and  during  the  first  two  or  three  years  had  scarcely 
reached  more  than  below  the  surface  of  the  work  requir- 
ing to  be  done.  The  Milwaukee  administration  was 
able  at  that  time  to  appropriate  only  $5000  from  the 
contingent  fund  for  the  purpose.  They  secured  the 
statistician  of  the  State  Railroad  Commission  to  start 
the  work  on  that  account ;  but  he  made  only  one  visit 
to  Milwaukee  and  then  accepted  an  important  position 
with  the  city  of  Chicago  as  expert  on  gas  and  telephone 
costs. 

The    following    September,    upon    the    assurance    of 


202  LABOR  AND  ADMINISTRATION 

B.  M.  Rastall,  at  that  time  in  charge  of  the  business 
courses  in  the  Extension  Division  of  the  University, 
that  he  would  supervise  the  work,  I  offered  to  take  charge 
on  the  understanding  that  the  Council  would  appropriate 
an  additional  $20,000  in  the  budget  of  1911.  Mr. 
Rastall  at  that  time  was  considering  the  acceptance  of 
a  similar  position  with  a  private  association  in  Boston, 
but  he  agreed,  under  an  arrangement  with  the  Extension 
Division,  to  give  part  time  to  the  Milwaukee  work  for 
one  year.  In  view  of  the  fact  that  experts  could  not  be 
secured  from  other  bureaus  I  considered  that  it  would 
be  possible  to  carry  on  the  work  by  part-time  arrange- 
ments with  the  accounting  and  engineering  experts  of 
the  University,  the  State  Railroad  and  Tax  Commissions 
and  such  private  associations  and  individuals  as  might 
take  a  public  interest  in  such  constructive  investigations. 
Meanwhile  the  office  staff  could  be  gotten  together, 
and  special  pieces  of  work  could  be  done  by  experts 
brought  in  temporarily. 

All  of  the  planning  and  details  of  this  scheme  were 
worked  out  successfully  by  Mr.  Rastall,  aided  by  the 
consulting  experts.  During  the  fifteen  months  from 
October,  1910,  to  December,  1911,  over  eighty  different 
individuals  were  on  the  pay  roll,  their  services  ranging 
from  a  few  days  to  fifteen  months  or  more,  but  the 
work  was  so  planned  that  they  fitted  in  at  the  proper 
places,  and  the  most  important  parts  of  the  work  were 
brought  to  a  head  and  ready  for  installation  before  the 
year  ended.  Additional  pieces  of  work,  limited  mainly 
to  the  Public  Works  and  Health  Departments,  were 
taken  up  when  it  seemed  assured  that  the  bureau  would 
be  continued  during  1912,  but  the  greater  part  of  the  work 
remaining  to  be  done  consists  of  the  installation  of 


MUNICIPAL  EFFICIENCY  203 

systems  already  recommended  and  of  assisting  officials 
to  become  familiar  with  the  forms  and  procedure.  A 
memorandum  is  given  below  of  the  several  lines  of  work 
undertaken,  and  their  present  status. 

Scope  of  the  Bureau's  Work 

The  name,  "  Bureau  of  Economy  and  Efficiency," 
was  adopted  some  time  after  the  work  was  begun,  in 
order  to  indicate  the  kind  of  work  and  to  designate 
the  staff  employed.  The  bureau  was  created  by  a_ 


resolution^  adopted  in  Tune,  1910.  This  resolution 
authorized  the  committee  to  investigate  the  "system  of 
accounts  of  all  deparTments1  "and  powers  granted  to  the 
City  of  Milwaukee,  and  to  submit  for  adoption  "  a 
complete  system  of  uniform  accounts,  vouchers  and 
other  forms  that  may  be  necessary  or  convenient  for 
carrying  out  such  systems,  and  recommendations  for 
rendering  more  efficient  and  economical  the  adminis- 
tration of  the  city." 

This  resolution  was  adopted  with  a  view  to  carrying 
out  certain  suggestions  which  I  had  submitted  in  April 
at  the  request  of  Mr.  Berger  and  Mayor  Seidel  for  a 
municipal  survey  similar  to  the  Pittsburgh  Survey. 
The  plan  of  the  Pittsburgh  Survey,  however,  was 
modified  by  placing  foremost  the  establishment  of  a  cost- 
keeping  and  efficiency  system  for  city  departments, 
with  bulletins  of  comparative  costs  to  be  published 
monthly.  Subordinate  to  this  was  placed  what  the 
bureau  afterwards  designated  as  "  the  social  survey." 
The  subjects  suggested  for  this  social  survey  were  cost 
of  living,  legal  aid,  hospitals  and  dispensaries,  unem- 
ployment, poor  relief,  immigrants,  industrial  hygiene, 
industrial  education,  housing  and  sanitation,  working 


204  LABOR  AND  ADMINISTRATION 

women  and  children.  It  was  suggested  that  much  of 
this  work  could  be  done  through  the  cooperation  of 
other  organizations  and  state  and  national  governments. 
When  it  came  to  working  out  the  details  of  the  social 
survey  with  Mr.  Rastall,  it  was  decided  to  restrict  it 
closely  to  a  study  of  the  efficiency  of  city  departments, 
as  stated  in  the  following  extract  from  the  first  bulletin 
of  the  bureau  on  "  Plan  and  Methods,"  published 
in  May,  1911 : 

The  social  survey  is  not  an  exhaustive  investigation  intended 
to  expose  conditions  or  to  furnish  material  for  social  philosophy, 
but^  a jmeans  of  measuring  the  efficiency  or  discovering  the  ineffi- 
.ciencyjof  city  government.  It  is  based  on  Hit*  prinriplpfhat  the 
municipal  government  is  a  social  corporation,  conductedTor  the 
health,  welfare  and  prosperity  of  its  inhabitants.  Consequently, 
the  measure  of  its  elEciency  is  the  extent  to  which  it  makes  its 
resources  go  in  promoting  health,  welfare  and  prosperity.  These 
are  its  dividends.  .  .  .  The  social  investigation  discovers  actual 
conditions,  the  efficiency  investigation  determines  means  and 
measures  for  dealing  with  them. 

It  was  decided  that  the  social  survey  should  be  financed 
outside  of  the  appropriation  from  city  funds,  and  that 
the  latter  should  be  expended  under  the  direction  of 
Mr.  Rastall  and  devoted  to  the  "  efficiency  survey." 
This  was  described  in  the  bulletin  on  "Plan  and 
Methods,"  as  follows : 

The  efficiency  survey  is  a  thorough  study  of  the  work  per- 
formed by  departments  for  the  city,  to  be  followed  by  a  reorgan- 
ization of  procedure  along  lines  of  the  greatest  economy  and 
efficiency. 

In  line  with  this  arrangement,  Mr.  Rastall  took  charge 
of  the  efficiency  survey,  and  I  made  arrangements  with 
other  agencies  for  the  social  survey.  With  the  help 


MUNICIPAL   EFFICIENCY  205 

of  Mr.  Jacobs,  private  associations  and  individuals  were 
solicited  for  funds  and  volunteer  investigators.  Among 
those  who  cooperated  in  this  way,  on  different  subjects 
of  investigation,  were  the  State  Anti-Tuberculosis  Asso- 
ciation on  the  enforcement  of  the  Housing  Laws  and 
ordinances  by  state  and  local  authorities,  on  the  regis- 
tration of  tuberculosis  by  the  Health  Department,  and 
on  the  improvement  of  milk  inspection ;  the  State  Bureau 
of  Labor  and  Industrial  Statistics  on  Housing  Laws, 
Infant  Mortality,  Garnishment,  of  Wages,  and  the 
Newsboys  of  Milwaukee;  the  Wisconsin  Consumers' 
League  on  Women's  Wages ;  the  Playground  and  Recrea- 
tion Association  of  America,  the  Milwaukee  Child 
Welfare  Commission  and  the  Milwaukee  Board  of  Edu- 
cation on  the  Survey  of  Public  Recreation  and  Amuse- 
ments and  a  constructive  programme  on  recreation  pre- 
pared by  Mr.  Rowland  Haynes  of  the  Playground 
Association;  the  Wisconsin  Legislative  Committee  for 
Workmen's  Compensation,  on  a  study  of  accidents  to 
workmen  in  Milwaukee ;  the  University  Settlement 
fellows  and  residents,  on  Free  Legal  Aid,  Free  Employ- 
ment, Workmen's  Accidents,  Infant  Mortality,  Milk 
Supply  and  Milk  Inspection.  These  were  aided  by  other 
private  contributions  and  by  personal  services  furnished 
by  the  College  of  Agriculture,  for  the  study  of  the  Milk 
Supply  and  Milk  Inspection,  and  by  the  services  of 
university  students  and  fellows,  and  other  volunteer 
investigators. 

The  bulk  of  the  work  in  the  social  survey  turned  on 
the  work  of  the  Health  Department,  and  this  made  it 
possible  finally  for  the  efficiency  survey,  under  the 
direction  of  Dr.  S.  M.  Gunn,  to  take  it  over  and  to 
formulate  a  complete  scheme  of  records  and  organiza- 


206  LABOR  AND  ADMINISTRATION 

tion  for  that  department.  This  has  been  partly  in- 
stalled, especially  in  the  sections  on  tuberculosis,  infant 
mortality  and  housing,  under  the  guidance  of  citizens' 
semi-official  committees  on  Tuberculosis,  Child  Welfare, 
Milk  Supply  and  Housing.  Other  parts  of  the  social 
survey  furnished  a  basis  for  the  cooperation  of  city  and 
county  with  the  state  in  the  reorganization  of  the  free 
employment  office;  for  the  regulation  of  newsboys  and 
other  street  trades  carried  on  by  boys  under  sixteen; 
and  for  placing  the  responsibility  for  enforcing  the  laws 
on  housing  solely  on  the  city  departments,  instead  of 
leaving  it  to  the  divided  authority  of  state  and  city. 
Parts  of  the  originally  proposed  social  survey  which  have 
not  been  taken  up  by  the  bureau  are  cost  of  living,  hos- 
pitals and  dispensaries,  unemployment,  poor  relief, 
immigrants,  industrial  hygiene.  The  recommendations 
on  free  legal  aid  have  not  been  adopted. 

Efficiency  Survey 

After  the  bureau  had  been  .organized  it  was  learned 
that  there  was  pending  before  the  railroad  Commis- 
sion a  petition  of  citizens  for  the  reduction  of  water 
rates.  In  view  of  this  case  it  was  decided  to  place  fore- 
most in  the  work  of  the  bureau  a  complete  investigation 
of  the  Water-works  Department,  which  should  include 
the  preparation  of  non-legal  parts  of  the  city's  case. 
The  Common  Council  incorporated  in  the  budget  for 
1911  two  appropriations  of  $5000  each  for  the  rate  case 
and  an  efficiency,  or  "  water  waste,"  survey,  to  be  con- 
ducted jointly  by  the  City  Attorney,  the  Commissioner 
of  Public  Works  and  the  bureau.  The  first  hearing  on 
the  case  was  set  for  September,  1911,  and  the  prelimi- 
nary work  was  practically  completed  by  that  time. 


MUNICIPAL   EFFICIENCY  207 

However,  on  account  of  several  postponements  of  the  hear- 
ings, the  argument  and  brief  remain  to  be  finished  after 
the  hearings  are  completed.  The  water  waste  survey 
included  also  the  preparation  of  a  report  on  electrolysis 
for  the  use  of  the  City  Attorney. 

Legal  Digest  and  Organization  Charts.  —  Soon  after 
its  organization  the  directors  of  the  bureau,  in  consulta- 
tion with  the  city  officials,  outlined  a  preliminary  sur- 
vey of  all  departments,  and  a  plan  of  organization  for 
the  Public  Works  and  Health  Departments.  The 
preliminary  survey  included  a  legal  digest  of  the  city 
charter,  laws  and  ordinances,  in  order  to  show  the 
powers  and  responsibilities  of  each  city  officer  or  em- 
ployee and  the  legal  procedure  required  of  each.  This 
digest  is  the  foundation  of  all  subsequent  work  and  has 
been  completed  for  each  department  of  the  city. 

While  the  legal  digest  was  in  preparation,  the  bureau 
made  a  preliminary  study  of  the  actual  organization  of 
the  departments,  and  this  was  put  in  the  form  of  charts 
showing  for  all  officers  and  employees  their  lines  of  re- 
sponsibility and  authority.  This  preliminary  study 
included  the  actual  duties  performed,  as  well  as  enough 
of  the  business  practice  and  accounting  procedure  of 
the  city  to  furnish  a  working  basis  for  future  detailed 
work.  The  use  made  of  these  preliminary  surveys  is 
described  in  Bulletin  No.  i,  "Plan  and  Methods," 
pages  8  to  12. 

Water  Department.  —  Following  the  preliminary  sur- 
veys a  detailed  study  was  made  of  the  organization  of 
the  Water  Department,  its  business  practice,  accounts 
and  records,  covering  every  phase  of  its  work  from  the 
intake  to  the  collection  of  consumers'  bills.  During 
the  summer  of  1911,  on  the  basis  of  these  studies,  a  com- 


208  LABOR  AND  ADMINISTRATION 

plete  revision  of  the  organization,  business  practice, 
accounts  and  records  was  made  and  approved  by  the 
Railroad  Commission,  and  ordered  installed,  January  i, 
1912.  The  City  Council  provided  temporarily  for  a 
chief  accountant  to  supervise  the  installation.  The 
reorganization  will  require  changes  in  the  laws  and  ordi- 
nances, especially  in  the  matter  of  consolidating  the 
Treasurer's  and  Water  Registrar's  Departments.  The 
office  of  Superintendent  of  Water-works  has  been 
created.  The  cost  bulletin  has  been  audited  by  the 
Commission,  and  is  ready  for  publication.  A  bulletin 
on  the  old  and  new  organization  is  partly  prepared  but 
not  yet  written  up  for  publication. 

The  Water  Waste  Survey,  including  the  report  on 
electrolysis  and  the  study  of  the  efficiency  of  the  present 
system  and  plans  for  future  growth,  has  been  completed 
and  the  recommendations  are  being  carried  out.  (See 
Bulletins  Nos.  n,  14  and  16.)  The  survey  was  neces- 
sarily limited  to  a  small  section  of  the  system,  but  it 
showed  a  probable  loss  of  23  per  cent  of  the  water  pumped 
through  underground  waste,  misuse  and  illegal  use, 
and  large  savings  which  might  be  made.  The  waste 
survey,  including  inspection  of  sprinkler  systems,  is 
continued  by  a  specially  organized  force  under  a  chief 
engineer,  reporting  to  the  Superintendent  of  Water- 
works. The  electrolysis  report  at  this  time  is  in  the 
hands  of  the  City  Attorney. 

The  actual  savings  which  will  result  from  these  prelimi- 
nary surveys  and  the  reorganization  of  the  department 
depend,  of  course,  on  the  extent  and  rapidity  with  which 
the  recommendations  are  carried  out.  The  cost  bulle- 
tin, audited  by  the  Railroad  Commission,  will  furnish 
an  exact  measure  of  the  amount  of  saving,  and  the  citi- 


MUNICIPAL  EFFICIENCY  209 

zens  of  Milwaukee  will  have  the  same  opportunity  of 
knowing  exactly  how  their  Water  Department  is  con- 
ducted in  all  its  details  that  a  board  of  directors  of  a 
private  corporation  now  has  under  the  modern  system 
of  cost  keeping. 

Refuse  Incinerator.  —  Following  a  complete  study  of 
the  garbage  incinerator,  covering  all  features  of  adminis- 
tration, operation  and  accounts,  and  a  special  engi- 
neering study,  a  report  was  prepared  and  published  as 
Bulletin  No.  5.  The  recommendations  include  utiliza- 
tion of  by-products,  especially  steam  and  clinker,  and 
savings  in  operation  estimated  at  $24,000  a  year.  The 
cost  bulletin  is  ready  for  interpretation  and  publi- 
cation. 

Collection  of  Garbage  and  Ashes.  —  Following  a  pre- 
liminary study  of  the  collection  and  hauling  of  garbage, 
ashes  and  other  refuse,  a  set  of  forms  and  records  was 
prepared  and  installed  for  securing  information  on 
actual  costs.  Based  on  these  monthly  reports  of  costs, 
a  plan  of  reorganization  and  redistricting  the  city  was 
prepared,  reducing  the  force  of  collectors,  improving 
the  service,  and  saving  about  $10,000  a  year.  The  city 
has  been  redistricted,  new  wagons  have  been  ordered 
and  the  system  of  garbage  collection  is  in  process  of 
installation.  Final  action  on  the  report  of  ash  collec- 
tions has  not  been  taken. 

Bureau  of  Sewers.  —  Complete  reorganization  has 
been  effected,  system  installed,  special  clerk  detailed, 
and  cost  reports  can  be  made  after  April  i. 

Street  Sprinkling,  Flushing  and  Oiling,  Sidewalk 
Repair.  —  A  thorough  study  was  made,  and  cost  records 
were  set  up,  furnishing  a  simplified  method  of  deter- 
mining unit  costs  upon  which  to  figure  assessments. 


210  LABOR  AND  ADMINISTRATION 

These  have  been  installed,  and  are  now  being  coordi- 
nated with  the  forms  used  for  the  tax  rolls. 

Street  Construction.  —  A  preliminary  plan  for  reor- 
ganization and  accounts  for  street  repairs  have  been 
made  and  transmitted.  An  accounting  system  for  this 
bureau  is  ready  for  installation.  The  filing  system  is 
completed  and  has  been  reviewed  and  transmitted. 

House  Drain  and  Plumbing  Inspection.  —  A  com- 
plete report,  with  plans  for  consolidation,  forms  and 
accounts,  was  published  as  Bulletin  No.  10.  The  sys- 
tem was  installed  in  November,  1911,  and  the  cost 
figures  of  the  first  month  show  a  reduction  of  costs  per 
man  per  inspection  to  31.2  c.  compared  with  61.  c.  the 
previous  month.  The  total  savings  amount  to  about 
$6000  a  year. 

Fire  and  Police  Alarm  Telegraph.  —  A  report  on  the 
advisability  of  consolidating  the  two  systems  showed 
that  this  could  be  done  so  far  as  construction  and  main- 
tenance were  concerned,  but  that  the  operation  should 
be  under  the  control  of  the  two  departments.  The 
consolidation  has  been  effected,  and  the  forms  for  the 
office  accounting  system  have  been  printed  and  are 
being  installed.  The  saving  that  results  from  consoli- 
dation is  estimated  at  $5620  a  year. 

Bridges  and  Public  Buildings.  —  Preliminary  studies 
were  made  of  the  operation,  management  and  accounts 
of  buildings,  city  hall  power  plant,  bridges,  natatoria 
and  bathing  beaches.  The  natatoria  report  is  completed 
and  transmitted,  but  not  installed.  The  report  on  city 
hall  power  plant  has  been  adopted  and  the  schedule  of 
accounts  is  being  installed.  Reports  on  costs  of  opera- 
tion can  be  made  after  May  i. 

Ward  Labor  Efficiency.  —  As  the  various  studies  were 


MUNICIPAL   EFFICIENCY  211 

being  made  the  question  of  the  efficiency  of  ward  labor 
has  come  up,  and  valuable  information  has  been  col- 
lected for  use  in  a  more  complete  study  of  employment    [ 
and  individual  efficiency,  not  yet  undertaken. 

City  Engineer's  Office.  —  Office  and  filing  systems 
completed  and  transmitted.  Forms  are  being  printed. 
The  accounting  system  has  been  planned  and  is  ready 
for  transmissal  and  installation. 

Purchasing  Department.  —  During  the  progress  of 
the  work  in  different  departments,  preliminary  notes 
have  been  made  on  purchase  methods,  including  stand- 
ards, specifications,  stock  inspection,  testing  of  pur- 
chases, and  a  comparative  study  has  been  made  of  pur- 
chase methods  of  private  corporations.  A  number  of 
purchasing  agents  of  large  Milwaukee  corporations 
have  agreed  to  serve  as  an  advisory  committee  to  the 
bureau  as  soon  as  it  is  in  position  to  take  up  the  detailed 
study  of  this  department. 

Harmonizing  of  Cost  Systems  and  Comptroller's  Ac- 
counts. —  During  the  time  when  the  bureau  was  devis- 
ing cost  systems  for  various  departments,  Mr.  Leslie 
S.  Everts,  the  deputy  comptroller,  was  engaged  in  the 
complete  reorganization  of  the  Comptroller's  office. 
That  work  has  been  completed  and  Mr.  Everts  has 
become  associated  with  the  bureau  and  is  now  engaged 
in  the  work  of  coordinating  the  two  systems  according 
to  the  plans  that  were  agreed  upon  when  the  work  was 
started.  This  check  is  vital  to  the  whole  system,  and 
will  require  a  considerable  amount  of  detailed  work  in 
order  to  perfect  it. 

Tax  Forms  for  Assessment  Records.  —  Beginning  in 
January,  1912,  a  complete  reorganization  of  forms  and 
records  of  the  Tax  Department  was  commenced,  and 


212  LABOR  AND   ADMINISTRATION 

these  are  ready  for  the  printer.  This  reorganization 
contemplates  a  large  reduction  of  clerical  work,  a  con- 
solidation of  all  assessments  and  the  installation  of 
tabulating  machines.  The  forms  of  bills  and  personal 
property  are  nearly  completed.  This  work  will  require 
installation  and  supervision  until  December.  A  study 
of  the  equalization  of  assessments  of  land  values  is  being 
made  under  the  direction  of  Mr.  Adams  of  the  State 
Tax  Commission,  and  will  be  completed  before  the  spring 
assessment.  A  preliminary  study  of  the  equalization  of 
assessments  for  buildings  and  machinery  has  been  made, 
but  the  detailed  work  is  postponed  until  after  this  year's 
assessment  has  been  completed. 

Health  Department.  —  The  preliminary  work  of  the 
Health  Department  consisted  mainly  of  the  social  sur- 
vey work.  This  was  followed  by  a  complete  plan  of 
reorganization  and  forms  and  records.  The  tuberculosis 
work  has  been  completed  and  installed,  under  the 
direction  of  a  semi-official  commission  representing 
different  agencies  interested  in  that  work.1  The  Child 
Welfare  work  was  similarly  placed  under  a  commission 
upon  plans  of  operation  prepared  and  installed  by  Mr. 
Wilbur  F.  Phillips.  In  both  of  these  divisions  a  perma- 
nent secretary  was  provided,  either  through  city  funds 
or  private  contributions,  the  staff  of  the  bureau  assisting 
by  way  of  the  preliminary  work  and  supervision. 

The  bureau  has  completed  its  study  of  the  reorganiza- 
tion of  the  Health  Department,  as  well  as  the  prepara- 
tion of  all  forms  and  records,  and  these  are  now  being 
installed  under  the  supervision  of  Mr.  Leuning,  chief 
of  the  Division  of  Education  and  Publications,  who 
had  cooperated  with  Dr.  Gunn  in  their  preparation. 

1  Afterwards  incorporated  as  a  division  of  the  Health  Department. 


MUNICIPAL   EFFICIENCY  213 

There  remain  to  be  completed  the  general  accounts  of 
the  Health  Department  and  their  coordination  with  the 
Comptroller's  office.  The  bureau's  recommendations 
involve  a  considerable  increase  in  the  annual  expense 
of  this  department,  amounting  to  $32,920,  before  it 
can  be  said  that  the  department  will  be  able  to  provide 
adequate  inspection,  control  of  communicable  diseases, 
and  records.  The  sanitary  inspection  force  has  been 
increased  in  accordance  with  recommendations,  and 
the  city  has  been  redistricted.  Sergeants  recommended 
for  sanitary  inspection  districts  have  not  been  ap- 
pointed. An  ordinance  placing  out-door  nuisance  in- 
spection in  the  hands  of  the  police  is  at  present  in  the 
Council.  The  milk  inspection  force  has  been  increased. 
The  divisions  of  milk  and  meat  inspection  have  not  yet 
been  combined.  The  Division  of  Education  and  Pub- 
lications has  been  organized  and  is  operating  on  the  basis 
recommended  in  the  report.  There  has  been  no  change 
as  yet  in  the  organization  of  the  health  laboratory. 

Summary 

The  following  is  a  summary  of  the  work  as  it  stands  in 
April,  1912  : 

A .   Supervision  of  Systems  Already  Installed 

Water  Department,  Bureau  of  Sewers,  House  Drain  and  Plumb- 
ing, Assessment  Section,  Incinerator,  Garbage  Collection,  Bridges 
and  Public  Buildings. 

B.   Installation  and  Supervision  of  Systems  Already   Designed 

Ash  Collection,  Natatoria,  Fire  and  Police  Alarm  Telegraph, 
Health  Department  forms  and  reorganization,  City  Engineer's 
office  and  accounting  systems,  Street  Construction  accounting 
system. 


214  LABOR  AND  ADMINISTRATION 

C.   Completion  of  Studies  Partially  Finished 

Completeness  of  Collections  and  Personal  Efficiency  in  the 
Water  Department,  Street  Sanitation,  Reorganization  of  Ward 
Crews,  including  Labor  Efficiency  and  Accounting  System : 
Street  Construction  Reorganization,  Tax  and  Assessment,  General 
Accounting  System  of  Department  of  Public  Works. 

D.  New  Studies  not  yet  begun  Necessary  to  Complete  the  Pro- 

gramme Mapped  out  for  the  Bureau 

Engineering  study  of  street  construction,  purchases,  engineer- 
ing study  of  transportation  of  street  and  other  refuse,  engineer- 
ing study  of  fire  and  police  alarm  telegraph,  Health  Department 
accounting  system,  coordination  of  records  in  offices  of  Comp- 
troller, Clerk,  Treasurer,  with  those  of  the  departments. 

E.   Bulletins 

The  following  bulletins  have  been  issued :  i .  Plan  and  Methods 
in  Municipal  Efficiency.  B.  M.  Rastall.  2.  Alarm  Telegraph 
Systems.  J.  E.  Trelevan.  3.  Garnishment  of  Wages.  W.  M. 
Price.  (Published  by  Wisconsin  Bureau  of  Labor.)  4.  Women's 
Wages  and  Proposed  Minimum  Wage  Law.  Ruby  Stewart  and 
Katherine  Lenroot.  (Published  by  Wisconsin  Consumers' 
League.)  5.  The  Refuse  Incinerator.  M.  Cerf,  L.  E.  Reber, 

E.  B.   Norris,   S.   A.   Greeley.     6.   Citizens'   Free  Employment 
Bureau.     Fred  A.  King.     7.  Free  Legal  Aid.     Fred    A.   King. 
8.     The  Newsboys  of  Milwaukee.     Alexander  Fleisher.     (Pub- 
lished by  Industrial  Commission.)     9.  Review  of  the  Bureau's 
Work,  and  Guide  to  Exhibit.     10.  Plumbing  and  House  Drain 
Inspection.     F.    H.  >Elwell.     n.    Water- works    Efficiency — i. 
Water  Waste  Survey.     Ray  Palmer,  W.  R.  Brown.     12.  Garbage 
Collection.     Robert   E.   Goodell.     13.   Health  Department  —  i. 
Milk   Supply.     S.    M.  Gunn.     14?  Water-works   Efficiency  —  2. 
Present  Capacity  and  Future  Requirements.     F.  E.  Turneaure. 
15.  Health  Department  —  2.  Education  and  Publications.     S.  M. 
Gunn,  F.  M.  Luening.     16.  Water-works  Efficiency  —  3.  Operat- 
ing Efficiency.     Ray  Palmer.     17.  Recreation  Survey.     Rowland 
Haynes.     18.  Health  Department  —  3.  Communicable  Diseases. 
S.  M.  Gunn.     19.  Eighteen  Months'  Work.     J.  R.  Commons. 


MUNICIPAL   EFFICIENCY  215 

Bulletins  completed,  ready  for  editing:  Electrolysis  of  Water 
Pipes,  Sanitary  Inspection,  Reorganization  of  Health  Department, 
Ash  and  Garbage  Collection,  Sewers. 

Bulletins  in  preparation :  Filing  System,  City  Engineer ;  Gen- 
eral Plan,  City  Organization. 

Manuscripts  in  office  which  can  be  used  for  bulletins  if  desired : 
High  Level  Pumping  Station,  Meats  and  Food  Inspection,  Reor- 
ganization of  Public  Structures. 

Suggested  bulletins:  Budget  Making,  The  Water  Rate  Case, 
Organization  of  the  Water  Department. 

Cost  Bulletins:  Monthly  statement  of  Water  Department 
costs  for  January,  published.  Incinerator  costs,  house  drain  and 
plumbing  inspection  costs  can  be  obtained.  Sewer  costs,  costs 
of  bridges  and  public  buildings,  City  Engineer's  office,  can  be 
obtained  about  May  i,  1912. 

Permanent  Organization 

Since  the  bureau  is  only  a  temporary  arrangement  for 
investigation  and  recommendation,  the  matter  of  in- 
stalling its  recommendations  when  adopted  and  making 
them  of  permanent  value  to  the  city  has  received  con- 
siderable attention. 

The  first  step  taken  in  this  direction  was  the  reorgan- 
ization of  the  Municipal  Reference  Department  on  a 
permanent  basis,  independent  of  changing  administra- 
tions, by  placing  it  with  the  Board  of  Trustees  of  the 
Public  Library.  It  is  now  maintained  as  a  branch 
library  at  the  City  Hall.  In  this  respect  the  example 
of  the  State  Legislative  Reference  Department  is  fol- 
lowed, which  is  under  the  State  Free  Library  Commis- 
sion. Such  a  department  is  not  merely  a  library  —  it 
is  an  agent  for  the  investigation  of  laws  and  ordinances 
in  all  other  states  and  countries  in  comparison  with 
those  at  home,  including  the  practical  working  of  such 
laws  and  ordinances,  and  the  drafting  of  effective  and 


216  LABOR  AND  ADMINISTRATION 

scientific  ordinances,  as  well  as  aiding  all  the  city 
departments  in  their  administration.  It  fills  the  place 
of  the  statistical  and  research  bureaus  which  have  been 
the  most  important  departments  of  European  city  govern- 
ments, especially  of  Germany,  in  bringing  those  cities 
up  to  their  high  level  of  efficiency. 

For  Milwaukee  it  was  considered  that  as  fast  as  the 
bureau's  investigations  and  recommendations  had  been 
completed  and  installed,  the  material  and  records  should 
be  turned  over  to  the  Reference  Librarian  for  permanent 
possession,  and  that  perhaps  the  bulletins,  including  the 
monthly  cost  bulletins,  could  be  supervised  and  published 
from  that  office. 

Another  method  of  providing  for  permanent  record 
and  uniformity  is  that  of  State  Supervision  of  Accounts. 
This  is  possible  under  the  public  utility  law  of  the  state 
in  so  far  as  the  Water-works  Department  is  concerned. 
The  bureau's  entire  system  of  forms  and  procedure  has 
been  approved  by  the  State  Railroad  Commission,  with 
modifications  preserving  uniformity  with  their  accounts 
for  other  cities,  and  the  installation  is  in  progress  under 
the  Commission's  supervision.  The  great  advantage 
of  this  method  is  that  it  secures  the  aid  of  an  outside 
body  of  experts  in  a  continuous  audit  and  inspection  of 
the  accounts  and  procedure,  with  authority  to  require 
compliance  with  its  orders.  A  similar  arrangement  is 
possible  for  all  other  city  departments  under  the  super- 
vision of  the  State  Tax  Commission,  authorized  by  law, 
Chapter  523,  adopted  by  the  legislature  of  1911.  In  this 
case,  however,  the  city  is  required  to  take  the  initiative 
and  to  request  the  assistance  of  the  Tax  Commission, 
meeting  the  actual  expenses  from  city  funds.  A  reso- 
lution under  the  provisions  of  this  law  has  been  intro- 


MUNICIPAL   EFFICIENCY  217 

duced  in  the  Common  Council,  but  has  not  been  acted 
upon. 

State  supervision  is  necessarily  limited  to  audit  and 
inspection  of  work  actually  done,  and  cannot  take  the 
place  of  active  work  on  the  part  of  the  city  itself.  The 
experience  of  the  New  York  bureau  offers  a  model  of 
what  might  be  done  in  Milwaukee.  That  bureau  found 
ready  at  hand  the  Department  of  Commissioner  of 
Accounts,  responsible  solely  to  the  Mayor.  The  depart- 
ment has  been,  as  the  bureau  states  in  its  latest  report, 
"  a  handicap  to  civic  progress,"  but,  after  its  reorganiza- 
tion in  1909,  it  had  become  "  a  potent  agent  for  efficiency 
and  honesty."  The  department  now  has  a  large  staff 
carrying  on  the  work  which  the  bureau  has  inaugurated 
for  all  city  departments.  Practically  the  same  result 
would  be  accomplished  in  Milwaukee  by  erecting  the 
present  temporary  bureau  into  a  permanent  department 
of  the  city  government,  reporting  directly  to  the  Mayor, 
and  cooperating  with  the  various  departments,  with 
the  state  commissions,  and  with  private  organizations 
of  citizens. 

A  citizens'  organization,  like  the  New  York  bureau, 
might  also  be  established,  with  funds  secured  from 
private  sources  adequate  to  keep  competent  experts 
continually  in  contact  with  the  work  done  by  the  city. 
Such  a  bureau  would  act  as  a  critic  where  the  city  depart- 
ments were  inefficient,  and  would  sustain  and  support 
officials  who  were  efficient.  The  New  York  bureau  has 
accomplished  remarkable  results  in  this  way. 

Other  plans  of  organization  might  be  suggested  more 
practical  for  Milwaukee  than  the  New  York  example. 
The  studies  which  the  bureau  has  made  of  labor  efficiency 
have  so  far  been  incidental  to  the  work  of  reorganization. 


218  LABOR  AND  ADMINISTRATION 

Such  studies  properly  belong  to  the  City  Service  Com- 
mission, and  are  being  taken  up  by  the  State  Commis- 
sion and  the  Chicago  Civil  Service  Commission.  They 
furnish  a  basis  for  the  classification  of  salaries  and  for 
promotions  and  dismissals.  A  permanent  organization 
of  a  Bureau  of  Efficiency  would  provide  for  cooperation  in 
this  matter  with  the  City  Service  Commission. 

The  real  test  of  work  of  this  kind  is  economy  where 
waste  is  found,  in  order  to  get  efficiency  where  false 
economy  is  found.  The  conditions  in  Milwaukee  are 
similar  to  those  found  by  other  bureaus  in  other  cities, 
and  in  private  corporations.  They  are  mainly  due  to 
the  fact  that  the  business  of  the  city  has  grown  faster 
than  its  business  methods.  Forms  of  organization, 
procedure,  and  records  which  were  satisfactory  on  a 
small  scale,  are  not  sufficient  to  conduct  the  business  of 
a  huge  corporation.  Most  of  all,  what  is  needed  is  a 
simple  system  that  will  show  to  the  citizens  exactly  what 
each  department  is  costing  and  what  it  is  doing.  No 
corporation,  public  or  private,  can  be  economical  and 
efficient  without  this  kind  of  accurate  information  for 
its  directors  and  stockholders.  This  is  the  work  that  a 
Bureau  of  Economy  and  Efficiency  can  perform. 


CHAPTER  XIV 

AMERICAN   SHOEMAKERS,   1648-1895  1 

THE  boot  and  shoe  makers,  either  as  shoemakers 
or  "  cordwainers,"  have  been  the  earliest  and  the  most^ 
strenuous^  of  American  industrialists  in  their  economic 
struggles.  A  highly  skilled  and  intelligent  class  of 
tradesmen,  widely  scattered,  easily  menaced  by  com- 
mercial and  industrial  changes,  they  have  resorted 
with  determination  at  each  new  menace  to  the  refuge 
of  protective  organizations.  Of  the  seventeen  trials 
for  conspiracy  prior  to  1842  the  shoemakers  occasioned 
nine.  Taking  the  struggles  of  this  harassed  trade,  it 
is  possible  to  trace  industrial  stages  by  American  docu- 
ments from  the  guild  to  the  factory.  Organizations 
whose  records  give  us  this  picture  of  industrial  evolu- 
tion under  American  conditions  are  the  "  Company 
of  Shoemakers,"  Boston,  1648 ;  the  "  Society  of  the 
Master  Cordwainers,"  Philadelphia,  1789;  the  "Fed- 
eral Society  of  Journeymen  Cordwainers,"  Philadel- 
phia, 1794;  the  "  United  Beneficial  Society  of  Journey- 
men Cordwainers,"  Philadelphia,  1835;  the  Knights 
of  St.  Crispin,  1868 ;  the  Boot  and  Shoe  Workers' 
Union,  1895.  Each  of  these  organizations  stands  for 
a  definite  stage  in  industrial  evolution,  from  the  primi- 
tive  itinerant  cobbler  to  the  modern  factory ;  each 

1  Quarterly  Journal  of  Economics,  Nov.,  1909.  References  are  to  re- 
prints in  "  Documentary  History  of  American  Industrial  Society,"  edited 
by  Commons,  Phillips,  Gilmore,  Sumner  and  Andrews,  and  published 
by  A.  H.  Clarke  Co.,  Cleveland,  O. 

219 


LABOR  AND  ADMINISTRATION 


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AMERICAN   SHOEMAKERS,    1648-1895         221 

/ 

represents  an  internal  contention  over  the  distribution 

of  wealth  provoked  by  external  conditions  of  market- 
ing or  production;  each  was  productive  of  written 
documents  preserving  to  us  the  types  of  social  organi- 
zation  that  struggled  for  adaptation  to  the  evolving 
economic  series. 

I 

"The  Company  of  Shoemakers,"  Boston,  1648 

Probably  the  first  American  guild  was  that  of  the 
"  shoemakers  of  Boston,"  and  its  charter  of  incorpora- 
tion, granted  by  the  Colony  of  the  Massachusetts 
Bay,  on  October  18,  1648,  is  the  only  complete  Ameri- 
can charter  of  its  kind,  of  which  I  have  knowledge.1 
The  coopers  were  granted  a  similar  charter  on  the 
same  date.  The  act  recited  that  on  petition  of  the 
"  shoomakers  "  and  on  account  of  the  complaints  of 
the  "  damage  "  which  the  country  sustained  "  by  occa- 
sion of  bad  ware  made  by  some  of  that  trade,"  they 
should  meet  and  elect  a  master,  two  wardens,  four  or 
six  associates,  a  "  clarke,"  a  sealer,  a  searcher,  and  a 
beadle,  who  should  govern  the  trade.  The  "commis- 
sion "  was  to  continue  in  force  for  three  years. 

A  contemporary  reference  to  this  incorporation  of 
shoemakers  is  that  of  Edward  Johnson,  in  his  "  Wonder- 
Working  Providence  of  Sion's  Savior  in  New  England," 
1651.  Speaking  of  the  material  progress  of  the  colony 
and  the  rapid  division  of  labor,  he  says,2  "  All  other 
trades  have  here  fallen  into  their  ranks  and  places,  to 
their  great  advantage;  especially  Coopers  and  Sho- 

1  See  Appendix  to  this  chapter. 

2  Collections  of  the  Massachusetts  Historical  Society,  Vol.  Ill,  ad 
Series,  p.  13  (Boston,  1826). 


222  LABOR  AND  ADMINISTRATION 

makers,  who  had  either  of  them  a  Corporation  granted, 
inriching  themselves  by  their  trades  very  much." 

In  the  charter  of  the  Boston  guild,  the  main  object 
of  the  shoemakers  was  the  suppression  of  inferior  work- 
men, who  damaged  the  country  by  "  occasion  of  bad 
ware."  The  officers  were  given  authority  to  examine 
the  shoemakers,  and  to  secure  from  the  courts  of  the 
colony  an  order  suppressing  any  one  whom  they  did 
not  approve  "to  be  a  sufficient  workman."  They 
were  also  given  authority  to  regulate  the  work  of  .those 
who  were  approved,  and  thus  to  "  change  and  reforme  " 
the  trade  and  "  all  the  affayres  thereunto  belonging." 
And  they  were  erected  into  a  branch  of  government 
with  power  to  annex  "  reasonable  pennalties  "  and  to 
"  levie  the  same  by  distresse." 

At  the  same  time  it  is  evident  that  the  colonial  au- 
thorities took  pains  to  protect  the  inhabitants  from  abuse 
of  these  powers  by  placing  their  determination  "  in 
cases  of  difficultie  "  in  the  hands  of  the  judges  of  the 
county,  and  by  allowing  appeals  to  the  county 
court.  The  two  substantial  reservations  which  the 
colony  withholds  from  the  company  are  the  "  inhanc- 
inge  the  prices  of  shooes,  bootes,  or  wages,"  and  the 
refusal  to  make  shoes  for  inhabitants  "of  their  owne 
leather  for  the  use  of  themselves  and  families,"  if  re- 
quired by  the  latter. 

From  these  reservations  we  are  able  to  infer  the  in- 
dustrial stage  which  the  industry  had  reached  at  the 
time  of  incorporation.1  It  was  the  transition  from 
the  stage  of  the  itinerant  shoemaker,  working  up  the 

1  See  Bucher,  "Die  Entstehung  der  Volkswirtschaft."  Citations  are 
from  Wickett's  translation,  "Industrial  Evolution"  (New  York,  1901). 
Also  Sombart,  "Der  Moderne  Kapitalismus,"  Vol.  I,  pp.  93-94. 


AMERICAN   SHOEMAKERS,    1648-1895         223 

raw  material  belonging  to  his  customer  in  the  home  of 
the  latter,  to  the  stage  of  the  settled  shoemaker,  work- 
ing up  his  own  raw  material  in  his  own  shop  to  the 
order  of  his  customer.  The  reservation  for  the  pro- 
tection of  inhabitants  is  suggestive  of  statutes  of  the 
fifteenth  and  sixteenth  centuries  imposing  penalties  on 
guild  members  who  refused  to  work  in  the  house  of  their 
customer.1  The  fact  that  the  colony,  while  granting 
power  to  reform  the  trade,  nevertheless  thought  it 
necessary  to  require  the  shoemaker  to  continue  to 
work  up  the  leather  owned  by  his  customer,  although 
conceding  that  he  need  not  go  to  the  house  of  the  cus- 
tomer, indicates  the  source  of  the  abuses  from  which 
the  shoemakers  were  endeavoring  to  rid  themselves. 
The  itinerant  was  likely  to  be  poorly  trained,  and  he 
could  escape  supervision  by  his  fellow  craftsmen.  He 
was  dependent  on  his  customer  who  owned  not  only 
the  raw  material,  but  also  the  work-place,  the  lodging, 
and  the  food  supplies  of  the  shoemaker,  leaving  to  the 
latter  only  the  mere  hand  tools.  He  worked  under 
the  disadvantage  of  a  new  work-place  for  each  new 
order,  without  the  conveniences  and  equipment  nec- 
essary for  speedy  and  efficient  work.  He  had  to  seek 
the  customer,  and  consequently  was  at  a  disadvantage 
in  driving  a  bargain.  This  made  him,  however,  a  serious 
menace  to  the  better  trained  shoemaker,  working  in 
his  own  shop  and  on  his  own  material,  but  waiting  for 
the  customer  to  come. 

The  Boston  guild  represented  the  union  in  one  person 

of  the  later  separated  classes  of  merchant,  master,  and 

journeyman.     Each   of    these   classes   has    a    different 

function.     The    merchant-function    controls    the    kind 

1  Biicher,  p.  169. 


224  LABOR  AND  ADMINISTRATION 

and  quality  of  the  work,  and  its  remuneration  comes 
from  ability  to  drive  the  bargain  with  the  customer  in 
the  process  of  adjusting  price  to  quality.  The  master- 
function,  on  the  other  hand,  controls  the  work-place 
and  the  tools  and  equipment,  and  passes  along  to  the 
journeyman  the  orders  received  from  the  merchant. 
Its  remuneration  comes  from  management  of  capital  and 
labor.  The  journeyman-function,  finally,  is  remunerated 
according  to  skill  and  quality  of  work,  speed  of  output 
and  the  amount  and  regularity  of  employment.1 

Thus,  from  the  standpoint  of  each  of  the  functions 
that  later  were  separated,  did  this  primitive  guild  in 
self-interest  set  itself  against  the  "  bad  ware  "  of  the 
preceding  itinerant  stage.  From  the  merchant  stand- 
point the  exclusion  of  bad  ware  removed  a  menace  to 
remunerative  prices  for  good  ware.  From  the  master 
standpoint  the  exclusion  of  the  itinerant  transferred 
the  ownership  of  the  workshop  and  the  medium  of  wage 
payments  from  the  consumer  to  the  producer.  From 
the  journeyman  standpoint,  this  exclusion  of  the  itin- 
erant eliminated  the  truck-payment  of  wages  in  the 
form  of  board  and  lodging  by  substituting  piece  wages 
for  a  finished  product.  And  this  control  of  the  finished 
product  through  all  the  stages  of  production  gave  a 
double  advantage  to  the  craftsman.  It  transferred 
to  him  the  unskilled  parts  of  the  work  hitherto  done 
by  the  customer's  family,  thus  enabling  him  at  one 
and  the  same  stroke  both  to  increase  the  amount  of 
his  work  and  to  utilize  the  bargaining  leverage  of  his 
skill  to  get  skilled  wages  for  unskilled  work. 

1  The  table  at  the  beginning  of  this  chapter,  showing  industrial  stages, 
classes,  and  organizations,  should  be  consulted  in  reading  this  and  the 
following  analysis. 


AMERICAN   SHOEMAKERS,    1648-1895         225 

By  this  analysis  we  can  see  that  when  the  three 
functions  of  merchant,  master  and  journeyman  were 
united  in  the  same  person,  the  merchant-function  epit- 
omized the  other  two.  It  is  the  function  by  which  the 
costs  of  production  are  shifted  over  to  the  consumer. 
The  master  looks  to  the  merchant  for  his  profits  on 
raw  material,  workshop,  tools  and  wages,  and  the 
journeyman  looks  to  him  for  the  fund  that  will  pay 
his  wages. 

Now,  there  is  a  prime  consideration  in  the  craft- 
guild  stage  that  enhances  the  power  of  the  merchant  to 
shift  his  costs  to  the  consumer.  This  is  the  fact  that 
his  market  is  a  personal  one,  and  the  consumer  gives 
his  order  before  the  goods  are  made.  On  the  other 
hand,  the  bargaining  power  of  the  merchant  is  menaced 
by  the  incapacity  of  customers  accurately  to  judge  of 
the  quality  of  goods,  as  against  their  capacity  clearly 
to  distinguish  prices.  Therefore,  it  is  enough  for  the 
purposes  of  a  protective  organization  in  the  custom- 
order  stage  of  the  industry,  to  direct  attention  solely 
to  the  quality  of  the  product  rather  than  the  price  or 
the  wage,  and  to  seek  only  to  exclude  bad  ware  and 
the  makers  of  bad  ware.  Thus  the  Boston  shoemakers 
and  coopers,  though  enlisting  the  colonial  courts  only 
in  the  laudable  purpose  of  redressing  "  the  damag 
which  the  country  sustaynes  by  occasion  of  bad  ware," 
succeeded  thereby  in  "  inriching  themselves  by  their 
trades  very  much."  In  this  they  differed  from  later 
organizations,  based  on  the  separation  of  classes,  to 
whom  competition  appeared  as  a  menace  primarily  to 
prices  and  wages,  and  only  secondarily  to  quality. 


226  LABOR  AND  ADMINISTRATION 

II 

The  Society  of  Master  Cordwainers,  1789,  and  the 
Federal  Society  of  Journeymen  Cordwainers, 
1794,  Philadelphia 

The  separation  of  classes  first  appears  in  the  case  of 
the  cordwainers  of  Philadelphia,  a  century  and  a  half 
later.  Here  appeared  the  first  persistent  discord  that 
broke  the  primitive  American  harmony  of  capital  and 
labor.  So  intense  were  the  passions  aroused,  and  so 
widespread  was  the  popular  irritation,  that  they  have 
left  their  permanent  record  in  one  hundred  and  fifty- 
nine  pages  of  "  The  Trial  of  the  Boot  and  Shoemakers 
of  Philadelphia,  on  an  indictment  for  a  combination 
and  conspiracy  to  raise  their  wages."  *  Here  we  have 
a  fairly  full  record  of  the  first  American  association  of 
employers  and  the  first  trade  union.  They  were  the 
"  Society  of  the  Master  Cordwainers  of  the  City  of 
Philadelphia,"  1789,  and  the  "Federal  Society  of 
Journeymen  Cordwainers  "  of  the  same  city,  organized 
in  1794. 

Other  journeymen  may  have  had  organizations 
prior  to  that  time.  Mr.  Ethelbert  Stewart 2  has,  in- 
deed, unearthed  records  showing  that  the  printers  in 
New  York  as  early  as  1776,  and  in  Philadelphia  as  early 
as  1786,  were  organized  for  the  purpose  of  supporting 
their  demands  by  means  of  strikes.  But  these  were 
temporary  organizations,  falling  apart  after  a  brief 
strike;  whereas  the  cordwainers  of  Philadelphia  in 
1799  conducted  a  strike  and  lockout  of  nine  or  ten 

^oc.  Hist.,  Vol.  Ill,  pp.  59-248. 

2  Bulletin  of  U.  S.  Bureau  of  Labor,  No.  61,  p.  860. 


AMERICAN  SHOEMAKERS,    1648-1895         227 

weeks.  To  them  goes  the  distinction  of  continuing 
their  organization  for  at  least  twelve  years,  and  ag- 
gressively driving  their  demands  at  the  end  of  that 
period  to  the  extent  that  the  public  took  notice  and 
the  employers  sought  refuge  behind  the  arm  of  the  law. 
And  it  is  to  this  junction  of  popular  excitement  and  judi- 
cial interposition  that  we  owe  the  record  which  exhibits 
this  earliest  struggle  of  capital  and  labor  on  American 
soil. 

The  indictment  charged  the  journeymen  with  con- 
spiring not  to  work  except  at  prices  .and  rates  in  excess 
of  those  "  which  were  then  used  and  accustomed  to 
be  paid  and  allowed  to  them  " ;  with  endeavoring  "  by 
threats,  menaces  and  other  unlawful  means  "  to  pre- 
vent others  from  working  at  less  than  these  excessive 
prices ;  and  with  adopting  "  unlawful  and  arbitrary 
by-laws,  rules  and  orders  "  and  agreeing  not  to  work 
for  any  master  who  should  employ  any  workman  vio- 
lating such  rules,  and  agreeing  "  by  threats  and  menaces 
and  other  injuries  "  to  prevent  any  workman  from 
working  for  such  a  master. 

The  conspiracy  and  strike  occurred  in  November, 
1805,  and  the  matter  came  to  trial  in  the  Mayor's 
court  in  March,  1806.  The  court  permitted  the  wit- 
nesses to  recite  the  entire  history  of  this  and  the  pre- 
ceding strikes,  as  well  as  the  history  of  the  preceding 
combinations  both  of  journeymen  and  employers. 
Consequently  we  are  able  to  trace  from  the  year  1789 
to  the  year  1806  the  development  of  the  boot  and  shoe 
industry  in  Philadelphia,  along  with  the  accompany- 
ing separation  of  the  interests  of  the  journeymen  from 
those  of  the  masters. 

I  do  not  find  any  record  of  a  guild  organization  like 


228  LABOR  AND  ADMINISTRATION 

that  in  Boston,  but  there  had  been  a  "  charitable 
society  "  to  which  both  employers  and  journeymen 
belonged,  and  this  was  still  in  existence  in  1805. 1  It 
was  the  masters  who  first  formed  themselves,  in  April, 
1789,  into  a  separate  organization.  Their  early  con- 
stitution was  laid  before  the  court,  showing  the  pur- 
pose of  their  organization  to  be  that  of  "  taking  into 
consideration  the  many  inconveniences  which  they 
labour  under,  for  want  of  proper  regulations  among 
them,  and  to  provide  remedies  for  the  same."  2  They 
were  to  "  consult  together  for  the  general  good  of  the 
trade,  and  determine  upon  the  most  eligible  means 
to  prevent  irregularities  in  the  same."  They  were  to 
hold  four  general  meetings  each  year,  and  they  had  a 
committee  of  seven  "  to  meet  together  as  often  as  they 
think  necessary."  The  society  terminated  in  1790, 
after  the  fifth  quarterly  meeting. 

Apparently  the  masters  had  at  that  time  just  two 
kinds  of  "  inconveniences  "  :  the  competition  of  cheap 
grades  of  goods  offered  for  sale  at  the  "  public  market," 
and  the  competition  of  masters  who  offered  bargain 
prices  by  public  advertisement.  This  is  shown  by 
their  qualifications  for  membership.  "  No  person  shall 
be  elected  a  member  of  this  society  who  offers  for  sale 
any  boots,  shoes,  etc.,  in  the  public  market  of  this  city, 
or  advertises  the  prices  of  his  work,  in  any  of  the  public 
papers  or  hand-bills,  so  long  as  he  continues  in  these 
practices." 

Evidently  this  society  of  masters  was  not  organized 
as  an  employers'  association,  for  nothing  is  said  of 
wages  or  labor.  It  was  organized  by  the  masters 
merely  in  their  function  of  retail  merchant.  The 
Hist.,  Vol.  Ill,  p.  99.  2  Ibid.,  p.  128. 


AMERICAN   SHOEMAKERS,    1648-1895         229 

attorneys  for  the  journeymen  tried  to  make  out  that 
when  the  latter  organized  separately  in  1794  they  did 
so  in  self-defence,  as  against  the  masters'  association, 
and  they  contended  that  in  the  masters'  constitution 
were  to  be  found  "  ample  powers  "  not  only  to  regulate 
prices,  but  also  "  to  form  a  league  to  reduce  the  wages 
of  their  journeymen."  1  And,  although  they  admitted 
that  the  association  had  terminated  in  1790,  yet  they 
held  "  it  was  a  Phcenix  that  rose  from  its  ashes." 2 
But  it  was  brought  out  clearly  in  evidence  that  the 
subsequent  resurrections  in  1799  and  1805  were  pro- 
voked by  the  journeymen's  aggressive  society  and 
were  but  temporary  organizations.  The  Phcenix  that 
kept  on  repeatedly  rising  was  not  the  one  that  had 
disappeared.  In  1789  it  had  been  an  organization 
of  masters  in  their  function  of  retail  merchant.  In 
its  later  stages  it  was  an  organization  of  masters  in 
their  function  of  employer.  The  distinction,  funda- 
mental in  economics,  caused  a  re-alignment  in  personnel, 
as  will  be  shown  presently.  The  early  organization 
regulated  prices  and  followed  the  vertical  cleavage 
between  producer  and  consumer.  The  later  organiza- 
tion regulated  wages  and  followed  the  horizontal  cleav- 
age between  employer  and  laborer.  In  the  early 
organization  the  journeyman's  interest  was  the  same  as 
the  master's.  In  the  later  ones  the  journeyman's 
interest  was  hostile  to  both  consumer  and  master. 

The  foregoing  considerations,  as  well  as  the  transition 
to  later  stages,  will  become  more  apparent  if  we  stop 
for  a  moment  to  examine  the  economic  conditions  that 
determine  the  forms  of  organization.  These  condi- 
tions are  found,  not  so  much  in  the  technical  "  instru- 

1  Ibid.,  p.  166.  2  Ibid.,  pp.  129,  174. 


23o  LABOR  AND   ADMINISTRATION 

ments  of  production,"  as  in  the  development  of  new 
markets.  The  economic  development  of  the  market 
proceeded  as  follows :  The  cordwainer  of  the  Boston  guild 
made  all  his  boots  and  shoes  to  the  order  of  his  customer, 
at  his  home  shop.  His  market  was  a  custom-order 
market,  composed  of  his  neighbors.  His  product,  in 
the  terminology  of  1806,  was  a  "  bespoke  "  product. 
He  was  in  his  own  person  master,  custom-merchant, 
and  journeyman. 

Next,  some  of  the  master  cordwainers  begin  to  stock 
up  with  standard  sizes  and  shapes,  for  sale  to  sojourners 
and  visitors  at  their  shops.  They  cater  to  a  wider 
market,  requiring  an  investment  of  capital,  not  only 
in  raw  material,  but  also  in  finished  products  and  per- 
onal  credits.  They  give  out  the  material  to  journey- 
men to  be  made  up  at  their  homes  and  brought  back 
to  the  shop.  In  addition  to  "  bespoke  work,"  the 
journeyman  now  makes  "  shop  work  "  and  the  master 
becomes  retail  merchant  and  employer.  This  was 
the  stage  of  the  industry  in  Philadelphia  in  1789  — 
the  retail-shop  stage. 

Next,  some  of  the  masters  seek  an  outside  or  foreign 
market.  They  carry  their  samples  to  distant  mer- 
chants and  take  "  orders  "  for  goods  to  be  afterwards 
made  and  delivered.  They  now  become  wholesale 
merchant-employers,  carrying  a  larger  amount  of 
capital  invested  in  material,  products  and  longer 
credits,  and  hiring  a  larger  number  of  journeymen. 
In  addition  to  "  bespoke "  and  "  shop "  work  the 
journeyman  now  makes  "  order  work  "  for  the  same 
employer.  This  is  the  wholesale-order  stage  of  the 
industry. 

This   was   the  stage  in   Philadelphia  in    1806.     At 


AMERICAN   SHOEMAKERS,    1648-1895          231 

that  time  we  find  the  journeyman  engaged  on  one 
kind  and  quality  of  work,  with  the  same  tools  and 
workshops,  but  with  four  different  destinations  for 
his  product.  Each  destination  was  a  different  market, 
with  a  different  level  of  competition,  leading  ultimately, 
after  a  struggle,  to  differences  in  quality.  The  terms 
employed  at  the  time  recapitulate  the  evolution  of 
the  industry.  "  Bespoke  work,"  recalls  the  primitive 
custom  market  of  the  Boston  guild,  now  differentiated 
as  the  market  offered  by  the  well-to-do  for  the  highest 
quality  of  work  at  the  highest  level  of  competition. 
"  Shop  work  "  indicates  the  retail  market  of  less  par- 
ticular customers  at  a  wider  but  lower  level  of  com- 
petition and  quality.  "  Order  work "  indicates  a 
wholesale  market  made  possible  by  improved  means 
of  transportation,  but  on  a  lower  level  of  strenuous 
competition  and  indifferent  quality  projected  from 
other  centres  of  manufacture.  "  Market  work "  — 
i.e.  cheap  work  sold  in  the  public  market  —  indicates 
the  poorest  class  of  customers,  and  consequently  the 
lowest  level  of  competition,  undermining  especially 
the  shop-work  level,  and,  to  a  lesser  degree,  the  order- 
work  level,  but  scarcely  touching  the  "  bespoke " 
level. 

It  was  the  widening  out  of  these  markets  with  their 
lower  levels  of  competition  and  quality,  but  without 
any  changes  in  the  instruments  of  production,  that 
destroyed  the  primitive  identity  of  master  and  journey- 
man cordwainers  and  split  their  community  of  interest 
into  the  modern  alignment  of  employers'  association 
and  trade  union.  The  struggle  occurred,  not  as  a 
result  of  changes  in  tools  or  methods  of  production, 
but  directly  as  a  result  of  changes  in  markets.  It  was 


232  LABOR  AND   ADMINISTRATION 

a  struggle  on  the  part  of  the  merchant-employer  to 
require  the  same  minimum  quality  of  work  for  each  of 
the  markets,  but  lower  rates  of  wages  on  work  destined 
for  the  wider  and  lower  markets.  It  was  a  struggle 
on  the  part  of  the  journeymen  to  require  the  same 
minimum  wage  on  work  destined  for  each  market,  but 
with  the  option  of  a  higher  wage  for  a  higher  market. 
The  conflict  came  over  the  wage  and  quality  of  work 
destined  for  the  widest,  lowest  and  newest  market. 
This  will  appear  from  the  evidence  brought  out  at  the 
trial. 

In  the  Boston  guild  it  does  not  appear  that  there  were 
any  journeymen.  Each  "  master  "  was  at  first  a  travel- 
ler, going  to  the  homes  of  his  customers  and  doing  the 
skilled  part  of  the  journeyman's  work.  Next  he  was 
the  all-round  journeyman,  not  only  "  his  own  master  " 
but,  more  important,  his  own  merchant.  The  harmony 
of  capital  and  labor  was  the  identity  of  the  human 
person.  The  market  was  direct,  the  orders  were  "  be- 
spoke." 

Even  in  Philadelphia,  in  1789,  when  the  masters  had 
added  "  shop  work "  and  had  separated  themselves 
out  as  an  association  of  retail  merchants,  the  interests 
of  the  journeymen  coincided  with  theirs.  The  journey- 
men were  even  more  distressed  by  "  market  work  " 
than  were  the  masters.  At  the  "  market  "  there  was 
no  provision  for  holding  back  goods  for  a  stated  price. 
Everything  had  to  be  sold  at  once  and  for  cash.  Goods 
were  not  carried  in  stock.  Consequently,  the  prices 
paid  were  exceedingly  low.  Job  Harrison,  the  "  scab," 
testified  that,  whereas  he  was  regularly  paid  gs.  for 
making  a  pair  of  shoes,  he  could  get  only  3$.  to  35.  6d. 
on  "  market  work."  If  he  should  quit  his  job  by  join- 


AMERICAN   SHOEMAKERS,   1648-1895        233 

ing  the  "  turn-out  "  under  orders  from  the  society,  he 
would  be  "  driven  to  market  work,"  at  which  he  could 
not  get  half  a  living.1  So  also  declared  Andrew  Dun- 
lap  and  James  Cummings,  members  of  the  society 
who  had  resorted  to  "  market  work  "  during  the  turn- 
out.2 The  journeymen's  society,  in  its  contest  with 
the  masters,  permitted  its  members  to  send  their  prod- 
uct to  the  public  market,  or  to  work  for  merchants 
who  supplied  that  market.  The  society  members 
pieced  out  their  strike  benefits  and  what  they  could 
get  by  "  cobbling,"  with  what  they  could  get  at  "  market 
work."  3  "  You  were  at  liberty  to  make  market  work, 
or  any  other  work  you  could  get,  except  of  master  work- 
men? "  "Yes,"  was  the  answer  of  Job  Harrison.4 
This  was  evidently  a  war  measure,  and  not  an  indication 
that  the  journeymen  were  less  hostile  than  the  retail 
merchant  towards  the  public  market. 

The  two  other  kinds  of  work  that  prevailed  in  1789 
were  "  shop  "  work  and  "  bespoke  "  work.  The  prices 
paid  to  the  journeymen  for  these  two  kinds  of  work 
were  originally  the  same.  If  they  differed  in  quality, 
the  difference  was  paid  for  at  a  specific  price  for  extra 
work,  as  when  Job  Harrison  got  six  pence  extra  a  pair 
if  he  would  "  side  line  "  his  shoes  with  silk.5  But  the 
payment  for  extras  was  the  same  for  shop  work  as  it 
was  for  "  bespoke  "  work.  The  same  workman  made 
both,  and  made  them  in  the  same  way,  with  the  same 
tools.  One  of  the  grievances  of  the  journeymen  was 
the  innovation  attempted  in  1798  by  one  of  the  em- 
ployers to  reduce  the  price  of  shop  work.  "  I  made 

1  Doc.  Hist.,  Vol.  Ill,  pp.  74,  83. 

2  Ibid.,  pp.  91,  96.  3  Ibid.,  pp.  83,  91,  93,  96. 

.88.  Ubid.,  p.  94. 


234  LABOR  AND  ADMINISTRATION 

some  work  for  Mr.  Ryan,"  said  John  Hayes,  "  and  he 
made  a  similar  reduction  upon  me,  because  they  were 
to  go  into  the  shop,  when  he  used  before  to  give  the 
same  price  for  shop  goods  as  he  did  for  bespoke  work."  1 
The  society  demanded  similar  pay  for  similar  work, 
whether  shop  or  bespoke.  "  None  are  to  work  under 
the  price,"  said  Keegan,  a  member  of  the  committee 
that  met  the  employers ;  "a  good  workman  may  get 
more."  2 

Thus  the  journeymen  were  at  one  with  the  masters 
in  their  opposition  to  "  market  work."  For  the  jour- 
neyman it  was  a  menace  to  his  wages  on  shop  work. 
For  the  master  it  was  a  menace  to  his  business  as  a 
retail  storekeeper. 

It  was  the  third,  or  "  export  "  stage  of  the  market, 
with  its  wholesale  "  order  "  work,  that  separated  the 
interests  of  the  journeyman  from  those  of  the  master. 
Here  the  retail  merchant  adds  wholesale  orders  to  his 
business.  We  find  John  Bedford  describing  the  way 
in  which  he  branched  out : 3 

Some  time  afterward  [1799],  my  little  capital  being  laid  out  in 
stock,  and  no  way  of  mending  it  at  home,  an  idea  struck  me  of 
going  to  the  southward,  and  endeavor  to  force  a  sale.  I  went  to 
Charleston  at  the  risque  of  my  life,  for  the  vessel  in  which  I  went 
had  like  to  have  been  lost  at  sea.  I  put  my  articles  at  an  extremely 
low  price,  by  which  I  had  but  little  profit,  in  order  to  induce  people 
to  deal  with  me.  I  got  two  customers  at  Charleston ;  from  there 
I  went  to  Norfolk,  Petersburg,  Richmond  and  Alexandria.  ...  I 
returned  with  two  or  three  small  orders  .  .  .  business  became  a 
little  brisk  and  the  journeymen  turned  out  again;  on  which  ac- 
count I  was  forced  to  raise  the  price  of  the  work  I  had  stipulated 
to  perform. 

1  Doc.  Hist.,  Vol.  Ill,  p.  121.  2  Ibid.,  p.  120. 

3  Ibid.,  pp.  loo-ioi. 


AMERICAN   SHOEMAKERS,    1648-1895         235 

He  goes  on  to  specify  the  loss  of  four  customers  and 
"  the  sale  of  4000  dollars'  "  worth  per  year. 

Six  years  later  Wm.  Montgomery  was  doing  an  "  ex- 
port "  business.  He  said  : 1 

I  had  at  that  time  [1805],  order  work  from  St.  Thomas's,  New 
Orleans  and  Charleston,  to  the  amount  of  2000  dollars,  but  I 
could  not  afford  to  give  the  rise  of  wages,  without  a  loss  in  execut- 
ing those  orders. 

Also  Lewis  Ryan : 2 

.  .  .  Barnes  and  Snyder  called  on  me  [1805!,  and  asked  if  I 
would  give  the  new  prices  ?  I  answered  yes ;  but  as  I  had  deter- 
mined to  relinquish  order-work,  it  should  be  to  the  best  workmen, 
and  that  only  for  bespoke  work. 

On  the  other  hand,  employers  who  were  not  branch- 
ing out  for  export  work  were  willing  to  pay  the  wages 
demanded  and  unwilling  to  join  the  employers'  associa- 
tion. Wm.  Young 3  had  belonged  to  the  masters' 
association  in  1789,  when  it  was  only  a  retail  merchants' 
association,  and  in  1805  he  was  still  doing  only  bespoke 
and  shop  work. 

Two  of  the  journeymen  waited  on  me  together,  [he  said] ;  they 
informed  me  that  they  felt  themselves  aggrieved,  and  had  deter- 
mined to  ask  higher  prices;  a  list  of  which  they  showed  me.  I 
told  them  I  had  been  in  the  habit  of  giving  those  prices  three 
months  before.  Q.  Did  the  master  workmen  call  on  you?  A. 
Yes :  I  told  them  I  could  not  retract  with  propriety,  as  I  had  been 
a  long  time  giving  the  very  wages  for  which  the  journeymen  turned 
out.  .  .  .  The  gentlemen,  when  they  called  upon  me,  tried  to 
make  some  influence  upon  me  to  discharge  my  workmen :  I  told 
them  I  could  not  do  it  with  propriety. 

Likewise,  the  journeymen  who  did  only  bespoke  and 
shop  work,  were  not  inclined  to  stand  by  the  union  for 

1  Ibid.,  p.  105.  2  Ibid.,  p.  106.  3  Ibid.,  pp.  25-126. 


236  LABOR  AND  ADMINISTRATION 

the  increase  in  prices.  Job  Harrison  said,1  "  If  shoes 
were  raised  to  gs.  I  should  not  be  benefitted,  for  I  had 
that  price  already,  but  you  know  it  cannot  be  given  only 
on  customers'  work."  Afterwards  he  was  asked : 

Did  I  understand  you  to  be  satisfied  all  this  time  with  the  wages 
you  had  been  accustomed  to  receive  from  Mr.  Bedford,  and  yet 
they  compelled  you  to  turn  out  ?  A.I  had  as  much  as  any  man, 
and  I  could  not  expect  more :  but  they  did  not  compel  me  to  turn 
out,  any  other  way  than  by  making  a  scab  of  me.  ...  At  length 
I  received  a  note  from  Mr.  Bedford,  informing  me  that  if  I  did  not 
turn  in  to  work  I  should  hereafter  have  no  more  than  common 
wages.2 

The  same  was  true  of  inferior  workmen  who  could 
not  command  the  wages  demanded.  These  were  doubt- 
less kept  on  "  order  "  work,  and  when  the  union  de- 
manded that  the  price  on  that  work  should  be  brought 
up  to  the  same  level  as  shop  and  bespoke  work,  they 
secretly  worked  "  under  wages."  The  union  had  a 
committee,  "  to  hunt  up  cases  of  the  kind,"  and  to  de- 
mand of  employers  that  such  men  be  discharged.3 

Thus,  as  intimated  above,  the  organization  of  the 
masters  according  to  their  employer-function,  as  com- 
pared with  their  former  organization  according  to  their 
merchant-function,  caused  a  re-alignment  of  personnel. 
Both  the  employer  and  the  workman  on  high-class 
custom-work  "  scabbed  "  on  their  respective  class  or- 
ganizations struggling  to  control  wholesale-order  work. 

The  several  steps  in  this  alignment  of  interests  will 
appear  in  the  history  of  the  journeymen's  society. 
The  first  society  of  the  journeymen  was  organized  in 
1792,  two  years  after  the  masters'  society  had  dissolved. 

1  Doc.  Hist.,  Vol.  Ill,  p.  82.  2  Ibid.,  p.  84. 

3  Ibid.,  p.  92. 


AMERICAN   SHOEMAKERS,    1648-1895         237 

This  was  apparently  a  secret  society.  At  any  rate  it 
did  not  submit  a  scale  of  prices  to  the  employers,  and 
did  not  call  a  strike,  but  merely  contented  itself  with  a 
"  solemn  "  oath  taken  by  each  member  to  the  effect, 
"  I  will  support  such  and  such  wages,  to  the  utmost  of 
my  power,  etc."  But  a  number  of  the  journeymen 
secretly  violated  their  pledge.  "  I  know  a  number," 
testified  Samuel  Logan,  at  that  time  a  journeyman,  but 
now  a  master,  "  to  work  under  wages  they  had  solemnly 
promised  to  support.  ...  I  therefore  requested  a 
repeal  of  this  affirmation,  which  broke  up  the  society."  l 
The  society  dissolved  in  1792,  the  year  of  its  organiza- 
tion. 

This  society,  however,  must  have  had  some  effect 
on  the  price  of  shoes,  for  the  price  which  had  originally 
been  45.  6d.2  had  been  raised  to  6s.  before  1794. 

It  was  in  1794  that  the  permanent  society  was  or- 
ganized, which  continued  until  the  time  of  the  prosecution 
in  i8o6.3  It  secured  in  that  year,  and  again  in  1796,  an 
increase  in  the  price  of  shoes,  first,  to  something  under 
$1.00,  then  to  $1.00  a  pair.4  These  increases  affected, 
however,  only  shop  and  bespoke  work,  so  that  after 
1796  the  "settled  price"  was  75.  6d.;  but  Job  Harrison, 
by  making  a  lighter  shoe  with  silk  lining  "  so  as  to  come 
nearer  to  the  London  dress-shoes,"  was  paid  95.  a  pair.5 
At  the  other  and  lowest  extreme,  only  "  five  eleven  penny 
bits  "  were  paid  for  "  order  work."  These  prices  pre- 
vailed until  1806.  The  bespoke  and  shop  work  was  said 
to  be  sold  to  customers  at  $2.75  a  pair,  but  the  order  work 
was  sold  to  retailers  at  $i  .80  a  pair.6  Thus  it  was  that  for 

1  Ibid.,  p.  93.  2  Ibid.,  p.  118. 

3  Ibid.,  pp.  174,  217-218.  4  Ibid.,  pp.  72,  93. 

*IW.t  pp.  74,86.  •Ibid.,  p.  86. 


238  LABOR  AND  ADMINISTRATION 

nominally  the  same  quality  of  shoe  the  journeymen's 
society  was  able  almost  to  double  their  wages  on  the  cus- 
tom and  retail  work,  but  had  brought  about  an  increase 
of  only  a  few  cents  on  the  wholesale-order  work.  In 
other  words,  the  employer  as  retail  merchant  gave  to  his 
employees  an  advance  out  of  the  advanced  retail  price 
of  his  goods,  but  as  wholesale  merchant  he  was  not  able 
to  give  a  similar  advance.  Naturally  the  better  class 
of  workmen  gravitated  towards  the  custom  and  retail 
work,  and  the  inferior  workmen  towards  the  wholesale 
work,  so  that  what  was  originally  the  same  quality  of 
work,  and  nominally  remained  the  same,  became  even- 
tually different  in  quality. 

This  variation  of  price  and  quality  is  also  observed 
in  the  price  of  boots.  These  had  been  advanced  in 
price  to  the  journeymen  from  $1.40  per  pair  in  1792, 
to  $2.75  per  pair  in  1796.  But  the  workmen  conceded 
that  they  should  make  order  work  at  $2.50  x  "  in  order 
to  encourage  the  exportation  trade."  2  This  was  taken 
advantage  of  at  the  time  of  the  cholera  epidemic  in 
1 798,  when  the  journeymen  were  paid  only  $2 . 2 5 .3  After 
the  journeymen  returned  to  the  city  they  organized 
their  second  strike,  in  1798,  for  an  increase.  This  was 
immediately  granted  by  the  employers,  but  in  the  fol- 
lowing year,  1799,  the  employers  effected  an  organiza- 
tion and  ordered  a  return  to  the  former  wage.  This 
caused  the  obstinate  strike  and  lockout  of  nine  or  ten 
weeks,  ending  in  a  compromise.  Again  in  1804  there 
was  another  brief  strike,  at  which  the  journeymen  won, 
and  the  employers  agreed  to  pay  $2.75.  But  after 
Christmas,  when  the  work  became  slack,  the  price  of 

1  Doc.  ffist,  Vol.  Ill,  p.  121.  2  Ibid.,  p.  124. 

3  Ibid.,  p.  121. 


AMERICAN  SHOEMAKERS,    1648-1895         239 

order  work  was  reduced  to  $2. 50.*  This  led  to  the 
obstinate  strike  of  1805,  in  which  the  journeymen  de- 
manded a  flat  increase  all  round  to  $3.00  on  both  whole- 
sale and  retail  work.  But  the  employers  had  perfected 
their  organization,  and  their  list  of  prices  made  no  men- 
tion of  order  work.  The  workmen  lost  the  strike  and 
were  compelled  to  accept  the  employers'  list.  Conse- 
quently in  1806,  as  compared  with  1789,  the  price  paid 
to  the  journeyman  on  retail  and  custom  work  had  ad- 
vanced from  $1.40  to  $2.75,  while  the  price  on  wholesale 
work  of  the  same  quality,  after  futile  efforts  of  the 
journeymen  to  equalize  it,  was  left  open  to  individual 
bargains.2  Exactly  as  in  the  case  of  shoes,  the  differ- 
entiation in  prices  led  to  a  differentiation  in  quality. 
The  tendency  of  custom  and  retail  work  was  towards 
improved  quality,  executed  by  superior  workmen.  The 
tendency  of  the  wholesale  work  was  towards  inferior 
quality  in  the  hands  of  inferior  workmen.  "  At  that 
time  [prior  to  1792],  I  believe  we  did  not  understand 
extra  work  in  them,  such  as  they  do  now,"  testified 
James  Keegan.3  "  I  never  do  order-work,  I  am  always 
paid  the  full  wages." 

Notice  now  the  characteristic  features  of  the  retail 
and  wholesale-order  stages  of  the  industry.  The  mas- 
ter workman  at  the  retail  stage  has  added  a  stock  of 
finished  goods  to  his  business  of  custom  work.  This 
requires  a  shop  on  a  business  street  accessible  to  the 
general  public,  with  correspondingly  high  rents.  It 
involves  also  a  certain  amount  of  capital  tied  up  in  short 

1  Ibid.,  p.  123. 

2 1  am  including  here  only  the  ordinary  "long  boots"  and  "cossacks." 
The  society  in  1805  also  demanded  an  increase  on  the  fancy  kinds  of  work 
recently  introduced.  Doc.  Hist.,  Vol.  Ill,  pp.  104,  107. 

3  Ibid.,  p.  118. 


24o  LABOR  AND  ADMINISTRATION 

credits  and  accounts  with  customers.  In  his  shop  he 
has  a  stock  of  raw  material,  besides  finished  and  partly 
finished  goods.  The  merchant-function  has  thus  be- 
come paramount,  and  has  drawn  with  it  the  master- 
function.  The  two  functions  have  equipped  them- 
selves with  capital  —  merchant's  capital  in  the  form  of 
finished  stock,  retail  store,  and  short  credits ;  employer's 
capital  in  the  form  of  raw  material  undergoing  manu- 
facture by  workmen  under  instructions.  The  journey- 
men are  left  with  only  their  hand  tools  and  their  home 
workshop. 

Thus  the  retail  market  has  separated  the  laborer  from 
the  merchant.  Labor's  outlook  now  is  solely  for  wages. 
The  merchant's  outlook  is  for  quality  and  prices.  But 
the  separation  is  not  antagonism.  The  employer- 
function  is  as  yet  at  a  minimum.  Profit  is  not  dependent 
on  reducing  wages  so  much  as  increasing  prices.  In- 
deed, the  journeymen  are  able  almost  to  double  their 
wages  without  a  strike,  and  the  merchants  pass  the  in- 
crease along  to  the  customers. 

But  it  is  different  when  the  merchant  reaches  out 
for  wholesale  orders.  Now  he  adds  heavy  expenses 
for  solicitation  and  transportation.  He  adds  a  store- 
room and  a  larger  stock  of  goods.  He  holds  the  stock 
a  longer  time  and  he  gives  long  and  perilous  credits. 
At  the  same  time  he  meets  competitors  from  other 
centres  of  manufacture,  and  cannot  pass  along  his  in- 
creased expenses.  Consequently  the  wage-bargain  as- 
sumes importance,  and  the  employer-function  comes 
to  the  front.  Wages  are  reduced  by  the  merchant  as 
employer  on  work  destined  for  the  wholesale  market. 
The  conflict  of  capital  and  labor  begins. 

Before  we  can  fully  appreciate  the  significance  and 


AMERICAN   SHOEMAKERS,    1648-1895         241 

the  economic  interpretation  of  these  revolutionizing 
facts,  we  shall  need  to  consider  the  next  succeeding 
stage,  that  of  the  merchant-capitalist. 

Ill 

The  United  Beneficial  Society  of  Journeymen 
Cordwainers,  Philadelphia,  1835 

The  organizations  of  masters  and  journeymen  of 
1805  continued  more  or  less  until  1835.  Then  a  new 
and  more  revolutionary  stage  of  the  industry  is  ushered 
in.  This  time  it  is  the  merchant-capitalist,  who  sub- 
dues both  the  master  and  the  journeyman  through  his 
control  of  the  new  widespread  market  of  the  South 
and  West.  We  read  of  his  coming  in  the  address  "  to 
the  Journeymen  Cordwainers  of  the  City  and  County 
of  Philadelphia,"  issued  by  the  two  hundred  members 
of  the  "  United  Beneficial  Society  of  Journeymen  Cord- 
wainers." 1  This  organization  took  the  lead  in  bringing 
together  the  several  trade  societies  of  Philadelphia 
into  the  Trades'  Union,  and  in  conducting  the  first  great 
general  ten-hour  strike  in  this  country.  The  reasons 
for  their  aggressiveness  may  be  inferred  from  their 
"  Address."  They  recite  that  the  wages  of  $2.75  for- 
merly paid  for  boots  have  fallen  to  $1.12  J;  that  their 
earnings  of  nine  to  ten  dollars  a  week  have  fallen  to 
four  to  six  dollars;  that,  in  order  to  earn  such  wages 
they  must  work,  in  many  instances,  fourteen  hours  a 
day;  and  that  other  skilled  tradesmen  are  earning 
eight  to  twelve  dollars  a  week,  often  "  only  working 
ten  hours  a  day."  This  depression,  they  explain,  has 
occurred  since  "  a  few  years  ago."  It  began  with  an 
1  Pennsylvanian,  April  4,  1835  ;  Doc.  Hist.,  Vol.  VI,  pp.  21-27. 

R 


242  LABOR  AND   ADMINISTRATION 

"  unfortunate  "  cooperative  experiment  of  the  journey- 
men in  "  opening  shops  for  the  manufacture  of  cheap 
goods  "  for  the  purpose  of  winning  a  strike.  It  was 
intensified  by  the  appearance  of  the  merchant-capitalist. 
We  are  told  that 

"The  cunning  men  of  the  East"  have  come  to  our  city,  and 
having  capital  themselves,  or  joining  with  those  who  have  had, 
have  embarked  in  our  business,  and  realized  large  fortunes,  by 
reducing  our  wages,  making  large  quantities  of  work  and  selling 
at  reduced  price,  while  those  who  had  served  their  time  at  the  trade, 
and  had  an  anxious  desire  to  foster  and  cherish  its  interests,  have 
had  to  abandon  the  business,  or  enter  into  the  system  of  manu- 
facturing largely  [i.e.  on  a  large  scale]  in  order  to  save  themselves 
from  bankruptcy. 

Then  they  explain  how  this  has  come  about  "  with- 
out any  positive  reduction  of  our  wages." 

The  answer  is  plain  and  simple  —  by  making  cheap  work,  triple 
the  quantity  has  to  be  made  to  obtain  a  living ;  this  produces,  at 
dull  seasons,  a  surplus  of  work  in  the  market;  and  these  large 
manufacturers,  taking  advantage  of  the  times,  have  compelled  their 
journeymen  to  make  the  work  so  far  superior  to  the  manner  in 
which  it  was  originally  made  for  the  wages  given,  that  it  is  now 
brought  into  competition  with  first-rate  work.  This  again  lessens 
the  quantity  of  first-rate  work  made,  and  the  journeymen,  for- 
merly working  for  employers  who  gave  them  $2.75  for  each  pair 
of  boots  made,  are  forced  to  seek  employment  of  the  very  men  who 
had  ruined  their  business. 

The  dubious  position  of  the  employers  also,  at  this 
stage  of  the  industry,  is  shown  by  the  action  of  "  a 
large  adjourned  meeting  of  the  ladies'-shoe  dealers  and 
manufacturers."  They  unanimously  adopted  a  pre- 
amble and  resolution  presented  by  a  committee  ap- 
pointed at  a  previous  meeting  reciting  that, 


AMERICAN  SHOEMAKERS,   1648-1895         243 

Whereas,  the  laboring  portion  of  this  community  have  made  a 
general  strike  for  what  they  consider  their  just  rights,  knowing 
that  if  they  were  longer  to  permit  the  growing  encroachments  of 
capital  upon  labor,  they  would  soon  be  unable  to  make  any  re- 
sistance ...  we  feel  a  desire  to  aid  and  encourage  them  in 
their  effort  to  obtain  an  adequate  compensation  for  their  labor. 
.  .  .  Knowing  that  the  pittance  hitherto  earned  by  them  is 
entirely  insufficient  for  their  support,  we  do  hereby  agree  to  and 
comply  with  their  demands  generally,  and  pledge  ourselves  to  do 
all  in  our  power  to  support  and  sustain  them.  .  .  .  Believing 
also  that  a  trifling  advance  in  the  price  of  shoes  would  scarcely 
be  felt  by  general  society  ...  we  will  agree  to  be  governed  here- 
after by  a  list  of  prices  for  our  work,  which  will  render  our  business 
uniform  and  permanent.1 

Nine  months  later  these  employers  were  forced  by 
the  exactions  of  the  union  and  their  inability  to  con- 
trol the  merchant-capitalist  to  take  the  other  side  of 
the  question,  organizing  as  an  employers'  association 
and  making  a  determined  fight  against  the  union.2 

At  this  stage  of  the  industry  we  have  reached  the 
market  afforded  by  highway  and  canal,  as  well  as  ocean 
and  river.  The  banking  system  has  expanded,  en- 
abling the  capitalist  to  convert  customers'  credits  into 
bank  credits  and  to  stock  up  a  surplus  of  goods  in  ad- 
vance of  actual  orders.  The  market  becomes  specu- 
lative, and  the  warehouse  of  the  wholesale-merchant- 
master  takes  the  place  of  the  store-room  of  the  retail 
capitalist.  The  former  master  becomes  the  small 
manufacturer  or  contractor,  selling  his  product  to  the 
wholesale-manufacturer,  the  merchant-capitalist.  The 
latter  has  a  wide  range  of  option  in  his  purchase  of  goods, 
and  consequently  in  his  ability  to  compel  masters  and 
journeymen  to  compete  severely  against  each  other. 

1  Pennsylvanian,  June  15,  1835  ;    Doc.  Hist.,  Vol.  VI,  pp.  27-28. 

2  Pennsylvanian,  March  28,  1836 ;    Doc.  Hist.,  Vol.  VI,  pp.  32~35- 


244  LABOR  AND  ADMINISTRATION 

He  can  have  his  shoes  made  in  distant  localities.  The 
cordwainers  relate 1  that 

there  are  many  employers  of  this  city  who  have  made  off  of  the 
labor  of  journeymen  a  liberal  fortune,  and  now  refuse  to  accede 
to  the  justice  of  our  demands,  and  in  order  to  evade  the  same  they 
are  preparing  materials  (in  this  city)  in  order  to  send  them  into  the 
towns  of  the  Eastern  states  (where  living  and  labor  are  cheaper 
and  workmanship  not  so  good)  to  get  the  same  made  into  shoes, 
then  to  be  brought  here  and  sold  for  Philadelphia  manufacture. 

The  merchant-capitalist  can  also  discover  new  fields 
for  the  manufacture  of  cheap  work,  and  for  the  first 
time  we  read  of  the  competition  of  convict  labor.  The 
cordwainers  publish  an  advertisement,2  warning  their 
members  against  a  firm  who  "  are  now  getting  work 
manufactured  by  convicts  in  the  Eastern  Penitentiary 
at  less  than  one-half  what  our  bill  of  rates  call  for.  ..." 
And  one  of  their  resolutions  asserts  that  "  shoemaking 
is  found  to  be  the  most  convenient  and  most  lucrative 
employment  of  convicts,  consequently  almost  one-half 
of  the  convicts  in  our  different  penitentiaries  are  taught 
shoemaking."3 

The  merchant-capitalist  has  also  the  option  of  all 
the  different  methods  of  manufacture  and  shop  organi- 
zation. He  can  employ  journeymen  at  his  warehouse 
as  cutters,  fitters  and  pattern  makers;  he  can  employ 
journeymen  at  their  homes  to  take  out  material  and 
bring  back  finished  work;  but,  more  characteristic 
of  his  methods,  he  can  employ  small  contractors,  the 
specialized  successors  of  the  master  cordwainer,  who  in 
turn  employ  one  to  a  dozen  journeymen,  and  by  division 

1  Pennsylvanian,  June  20,  1835 ;    Doc.  Hist.,  Vol.  VI,  pp.  29-30. 

2  Pennsyhanian,  Sept.  5,  1835. 
8  Pennsylvanian,  Oct.  i,  1835. 


AMERICAN   SHOEMAKERS,    1648-1895         245 

of  labor  and  "  team  work "  introduce  the  sweating 
system.1 

Through  these  different  methods  of  manufacture 
we  are  able  to  see  how  it  is  that  the  merchant-capitalist 
intensifies  and  even  creates  the  antagonism  of  "  capital 
and  labor."  He  does  this  by  forcing  the  separation  of 
functions  and  classes  a  step  further  than  it  had  been 
forced  in  the  wholesale-order  stage.  First,  he  takes 
away  from  the  retail  merchant  his  wholesale- order  busi- 
ness. He  buys  and  sells  in  large  quantities;  he  as- 
sembles the  cheap  products  of  prison  labor,  distant 
localities,  and  sweat-shops;  he  informs  himself  of  mar- 
kets, and  beats  down  the  charges  for  transportation. 
Thus  he  takes  to  himself  the  wholesale  business  and 
leaves  to  the  merchant  the  retail  trade. 

Second,  he  drives  off  from  the  retail  merchant  his 
employer-function.  The  retail  merchant  can  no  longer 
afford  to  employ  journeymen  on  "  shop  "  work,  because 
he  can  purchase  more  cheaply  of  the  merchant-capi- 
talist. A  few  years  ago,  say  the  cordwainers  in  their 
"  address,"  "  such  an  article  as  boots  was  then  unknown 
in  the  Market  street  shops :  the  manufacturing  of  that 
article  being  confined  exclusively  to  those,  who  having 
served  an  apprenticeship  to  the  business,  knew  best 
its  value."  2 

Thus  the  merchant-capitalist  strips  the  former  mer- 

1  The  term  "manufactory,"  as  distinguished  from  "factory,"  occurs 
in  the  merchant-capitalist  stage  to  indicate  the  combined  warehouse 
and  place  of  employment  where  material  is  prepared  to  be  taken  out  by 
journeymen  or  contractors.     It  is  the  "inside  shop"  of  the  ready-made 
clothing  trade,  the  contractor's  shops  being  known  as  "outside  shops." 
See  Commons,  "Trade  Unionism  and  Labor  Problems,"  p.  316  (1905), 
article  on  "sweating  system." 

2  Pennsylvanian,  April  4,  1835  ;    Doc.  Hist.,  Vol.  VI,  p.  22. 


246  LABOR  AND  ADMINISTRATION 

chant-master  both  of  his  market  and  his  journeymen. 
The  wholesale  market  he  takes  to  himself ;  the  journey- 
men he  hands  over  to  a  specialist  in  wage-bargaining. 
This  specialist  is  no  longer  known  as  "  master,"  —  he 
takes  the  name  of  "  boss,"  1  or  employer.  He  is  partly 
a  workman,  having  come  up  through  the  trade,  like  the 
master,  and  continuing  to  work  alongside  his  men.  He 
is  an  employer  without  capital,  for  he  rents  his  work- 
shop, and  the  merchant-capitalist  owns  the  raw  material 
and  the  journeymen  own  the  tools.  His  profits  are  not 
those  of  the  capitalist,  neither  do  they  proceed  from  his 
ability  as  a  merchant,  since  the  contract-prices  he  gets 
are  dictated  by  the  merchant-capitalist.  His  profits 
come  solely  out  of  wages  and  work.  He  organizes  his 
workmen  in  teams,  with  the  work  subdivided  in  order 
to  lessen  dependence  on  skill  and  to  increase  speed  of 
output.  He  plays  the  less  skilled  against  the  more 
skilled,  the  speedy  against  the  slow,  and  reduces  wages 
while  enhancing  exertion.  His  profits  are  "  sweated  " 
out  of  labor,  his  shop  is  the  "  sweatshop,"  he  the 
"  sweater." 

Thus  the  merchant-capitalist,  with  his  widespread, 
wholesale-speculative  market,  completes  the  separation 
and  specializes  the  functions  of  the  former  homogeneous 
craftsman.  The  merchant-function,  which  was  the 
first  to  split  off  from  the  others,  is  now  itself  separated 
into  three  parts,  —  custom  merchant,  retail  merchant, 
wholesale  merchant,  —  corresponding  to  the  three  levels 
of  market  competition.  The  journeyman-function  is 

1  The  first  use  that  I  have  found  of  the  Dutch  word  "bos,"  meaning 
manager  of  a  group  of  workmen,  is  in  the  organ  of  the  New  York  Trades 
Union,  The  Man,  May  30,  1834;  Doc.  Hist.,  Vol.  VI,  p.  92.  It  was 
spelled  with  one  "s,"  though  the  obstinacy  of  the  printer  of  the  "Docu- 
mentary History  "  finally  succeeded  in  using  two  in  the  reprint. 


AMERICAN   SHOEMAKERS,    1648-1895         247 

now  segregated  on  two  levels  of  competition,  the  highest 
level  of  custom  work  and  the  lowest  level  menaced  by 
prison  and  sweatshop  work.  The  employer-function, 
the  last  to  split  off,  makes  its  first  appearance  as  a  sep- 
arate factor  on  the  lowest  level  of  market  competition. 
Evidently  the  wide  extension  of  the  market  in  the  hands 
of  the  merchant-capitalist  is  a  cataclysm  in  the  posi- 
tion of  the  journeyman.  By  a  desperate  effort  of  or- 
ganization he  struggles  to  raise  himself  back  to  his 
original  level.  His  merchant-employers  at  first  sympa- 
thize with  him,  and  endeavor  to  pass  over  to  their  cus- 
tomers his  just  demand  for  a  higher  wage.  But  they 
soon  are  crushed  between  the  level  of  prices  and  the 
level  of  wages.  From  the  position  of  a  merchants'  as- 
sociation striving  to  hold  up  prices,  they  shift  to  that 
of  an  employers'  association  endeavoring  to  keep  down 
wages.  The  result  of  these  struggles  of  protective  or- 
ganizations will  appear  when  we  analyze  more  closely 
the  economic  forces  under  which  they  operate.  These 
forces  turn  on  the  nature  of  the  bargain,  the  period 
and  risk  of  investment  and  the  level  of  the  competitive 
menace. 

i .    The  Nature  of  the  Bargain 

We  have  to  do  with  two  classes  of  bargains,  the  wage- 
bargain  and  the  price-bargain.  Each  is  affected  by  the 
increasing  distance  of  the  ultimate  purchaser,  the  actual 
consumer,  from  the  worker,  the  manual  producer.  In 
the  primitive  "  bespoke,"  or  custom-order  stage,  the 
market  is  direct  and  immediate.  The  producer  is  the 
seller  to  the  consumer.  The  work  is  priced  by  means  of 
a  separate  bargain  for  each  article.  The  price-bargain 
is  made  before  the  work  is  done.  The  customer  pays 


248  LABOR  AND  ADMINISTRATION 

according  to  the  quality,  and  if  he  desires  an  improved 
quality,  he  stands  the  increased  price;  or,  if  the  pro- 
ducers are  able  to  exclude  an  inferior  quality,  he  pays  the 
price  of  the  quality  supplied.  Hence  an  increase  of 
wages  is  shifted  directly  to  the  purchaser.  The  wage- 
bargain  and  price-bargain  are  identical. 

In  the  retail-shop  stage,  the  producer  is  removed  one 
step  from  the  ultimate  purchaser.  The  merchant  in- 
tervenes as  a  price-bargainer.  This  bargain  is  made 
after  the  work  is  done.  The  purchasers  are  now  sep- 
arated into  two  classes,  those  who  are  particular  about 
quality  and  adhere  to  the  custom-order  bargain,  and 
those  who  are  particular  about  price  and  pass  on  to  the 
"  shop  "  bargain.  To  the  latter  is  transferred  a  certain 
advantage,  and  the  merchant  is  less  able  to  shift  upon 
them  an  increase  in  wages.  The  wage-bargain  is  made 
for  a  stock  of  shoes  rather  than  an  individual  purchaser, 
and  the  goods  are  to  be  sold  with  reference  to  price  rather 
than  quality. 

In  the  wholesale-order  stage  the  market  is  removed 
a  second  step.  There  are  two  price-bargains  that  in- 
tervene between  the  worker  and  the  market,  one  be- 
tween the  wholesaler  and  retailer  and  one  between 
retailer  and  consumer.  The  wholesale  price-bargain 
is  indeed  made  before  the  work  is  done,  and  to  that 
extent  the  wages,  if  previously  known,  can  be  shifted. 
But  the  retailer,  as  shown  above,  is  himself  restricted 
in  his  ability  to  shift  an  increase  upon  the  purchasers, 
and  he  is  more  concerned  than  they  as  to  price  because 
his  profit  turns  thereon,  while  he  is  concerned  with 
quality  only  indirectly  as  their  representative  and  not 
directly  as  the  actual  user.  Consequently,  the  whole- 
sale merchant  is  less  able  than  the  retail  merchant 


AMERICAN  SHOEMAKERS,   1648-1895        249 

to  shift  his  wages.  Of  course,  if  an  increase  in  wages 
is  demanded  after  the  orders  are  taken,  he  is  compelled 
at  once  to  make  a  fight  against  the  workers.  It  was  the 
opportunity  offered  by  the  wholesale-order  stage  to 
take  this  unfair  advantage  of  the  employer  that  provoked 
the  first  bitter  struggle  of  capital  and  labor  in  1806. 

The  wholesale-speculative  stage  of  1835  intrudes  yet 
another  step  on  the  road  from  producer  to  market. 
The  employer  is  now  separated  out  from  both  the  mer- 
chant and  the  worker,  and,  besides  the  wage-bargain, 
we  have  three  price-bargains,  —  the  employer-capitalist, 
capitalist-retailer  and  retailer-consumer.  The  second 
bargain,  that  of  capitalist-retailer,  is  made  after  the 
work  is  done,  and  it  is  this  that  constitutes  its  specu- 
lative character.  It  transfers  the  advantage  of  position 
to  the  retailer,  just  as  shop  work  had  transferred  the 
advantage  to  the  consumer.  Consequently,  the  em- 
ployer, or  "  contractor,"  the  sweatshop  "  boss,"  is  now 
introduced  as  a  specialist  in  driving  the -wage-bargain, 
with  reference  to  the  increased  obstacles  in  the  way 
of  shifting  wages  along  to  the  ultimate  purchaser. 

Thus  it  is  that  the  ever-widening  market  from  the 
custom-order  stage,  through  the  retail-shop  and  whole- 
sale-order to  the  wholesale-speculative  stage,  removes 
the  journeyman  more  and  more  from  his  market,  diverts 
attention  to  price  rather  than  quality  and  shifts  the 
advantage  in  the  series  of  bargains  from  the  journeymen 
to  the  consumers  and  their  intermediaries. 

2.    The  Period  and  Risk  of  Investment 

Throughout  the  four  stages  here  described  there  have 
been  no  changes  in  the  tools  of  production.  The  factory 


250  LABOR  AND  ADMINISTRATION 

system  with  its  "  fixed  capital  "  has  not  yet  appeared, 
and  the  only  capital  invested  is  "  circulating  capital  " 
in  the  form  of  raw  material,  finished  stock  and  bills 
receivable.  Upon  this  circulating  capital  the  owner 
incurs  the  threefold  expense  of  interest,  risk  and  nec- 
essary profit.  The  amount  of  capital,  per  unit  of  prod- 
uct, remains  the  same,  but  the  period  during  which  it 
is  locked  up  is  lengthened  in  proportion  as  the  market 
area  is  extended.  In  the  custom-order  stage  this  period 
is  at  its  minimum;  in  the  retail-shop  stage  the  period 
is  lengthened ;  in  the  wholesale-order  stage,  on  account 
of  long  credits,  the  period  is  at  its  maximum;  in  the 
wholesale-speculative  stage  the  average  period  is  per- 
haps reduced,  but  this  is  more  than  offset  by  the  increase 
in  the  rate  of  risk.  This  increase  of  expense  for  "  wait- 
ing "  and  risk,  owing  to  the  lengthening  of  the  period 
of  investment,  must  either  be  added  to  the  price  paid  by 
the  consumer  or  deducted  from  the  wage  paid  to  the 
producer.  But  since  the  position  of  purchasers  in  the 
price-bargains  is  improved  with  the  progress  of  the  stages, 
the  increased  expense  on  account  of  circulating  capital 
must  be  met  by  deductions  from  the  rates  of  wages. 
This  might  not  have  been  necessary  if  fixed  capital  had 
been  introduced,  bringing  with  it  a  greater  speed  of 
output  at  the  old  amount  of  earnings.  But,  in  lieu  of 
this  cheapening  by  improved  tools  of  production,  the 
only  way  of  meeting  the  increased  expense  of  waiting  is 
by  reducing  the  rate  of  pay  on  each  unit  of  product. 
The  wholesale  market  is  a  market  for  "  future  goods," 
the  custom-order  market  is  a  market  for  "  present 
goods."  The  premium  on  "  future  goods "  appears, 
therefore,  as  a  reduction  below  the  wages  paid  at  the 
same  time  on  "  present  goods."  Shop  work,  order  work 


AMERICAN   SHOEMAKERS,    1648-1895         251 

and  speculative  work  must  be  manufactured  at  a  lower 
wage-cost  than  bespoke  work  of  the  same  kind  and 
quality. 

3.    The  Level  of  the  Competitive  Menace 

Denning  the  "  marginal  producer  "  as  the  one  with 
the  lowest  standards  of  living  and  cost  and  quality 
of  work,  he  is  the  producer  whose  competition  tends 
to  drag  down  the  level  of  others  toward  his  own.  It 
is  not  necessary  that  he  be  able  actually  to  supply  the 
entire  market  or  even  the  greater  part  of  it.  His  effect 
on  others  depends  on  the  extent  to  which  he  can  be 
used  as  a  club  to  intimidate  others  against  standing 
out  for  their  side  of  the  bargain.  He  is  a  menace  rather 
than  an  actual  competitor.  Now,  the  extension  of 
the  market  for  the  sale  of  goods  is  accompanied  by 
an  extension  of  the  field  for  the  production  of  goods. 
This  extension  brings  into  the  competitive  area  new 
competitors  who  are  essentially  a  series  of  lower  mar- 
ginal producers.  The  capitalist  who  can  reach  out 
for  these  low-level  producers  can  use  them  at  will  to 
break  down  the  spirit  of  resistance  of  the  high-level 
producers.  In  the  custom-order  stage  there  was  but 
one  competitive  menace,  the  shoemaker  who  made 
"  bad  ware."  In  the  retail-shop  stage  there  is  added 
the  "  advertiser,"  the  "  public  market  "  and  the  auction 
system.  In  the  wholesale-order  stage  there  is  added 
the  foreign  producer  and  in  the  wholesale-speculative 
stage  the  labor  of  convicts  and  sweatshops.  Thus,  the 
extension  of  the  field  of  production  increases  the  variety 
and  discovers  lower  levels  of  marginal  producers,  and 
the  merchant-capitalist  emerges  as  the  generalissimo, 


252  LABOR  AND  ADMINISTRATION 

menacing  in  turn  every  part  of  the  field  from  his  stra- 
tegic centre. 

4.    Protective  Organizations 

We  have  already  seen  the  cumulative  effect  in  1806 
and  1835,  of  these  three  sets  of  circumstances  in  drag- 
ging down  the  entire  body  of  workmen.  We  now  pro- 
ceed to  notice  the  resistance  of  protective  organizations 
and  their  ultimate  effect  in  bringing  about  a  segregation 
of  work  and  workers  on  non-competing  levels. 

This  may  be  seen  by  following  again  the  movement 
of  wages  in  Philadelphia  from  1789  to  1835,  on  the  dif- 
ferent classes  of  work.  Prior  to  1792,  on  common  boots, 
the  journeyman's  wages  were  $1.40  a  pair  on  both  be- 
spoke and  shop  work.  In  the  course  of  fifteen  years 
the  price  advanced  to  $2.75,  and  this  price  was  paid  for 
both  bespoke  and  shop  work,  but  a  concession  of  25 
cents  was  made  on  wholesale-order  work,  bringing  that 
price  to  $2.50.  In  1835  the  price  had  fallen  to  $1.125  for 
wholesale  work,  while  retail  work  had  dropped  out  or 
had  come  down  to  the  same  price  as  wholesale  work, 
leaving  custom  work  at  a  higher  figure.  In  the  course 
of  this  movement,  the  better  class  of  workmen  restricted 
themselves  as  much  as  possible  to  custom  work,  and  the 
quality  of  this  kind  of  work  was  improved.  On  the 
other  hand,  the  wholesale-order  and  wholesale-specula- 
tive work  tended  throughout  to  fall  into  the  hands  of 
inferior  workmen,  and  this  brought  about  an  inferiority 
in  quality.  These  inferior  goods,  made  by  inferior 
workmen,  became  more  and  more  a  menace  to  the 
superior  goods  and  the  superior  journeymen,  both  on 
account  of  the  lower  levels  of  the  marginal  producers 


AMERICAN   SHOEMAKERS,    1648-1895         253 

and  on  account  of  the  smaller  demand  relatively  for  the 
production  of  superior  goods. 

Herein  was  the  necessity  of  protective  organizations. 
In  order  that  these  organizations  might  succeed,  it 
was  just  as  necessary  to  set  up  protection  against  in- 
ferior goods  as  against  low  wages.  In  the  guild  stage 
of  the  industry,  when  the  three  functions  of  journey- 
man, master  and  workman  were  united  in  one  person, 
the  protection  sought  was  against  the  "  bad  ware  " 
made  by  some  of  the  trade.  By  "  suppressing  "  those 
who  made  bad  ware,  the  customers  would  be  compelled 
to  turn  to  those  who  were  "  sufficient  "  workmen  and 
made  good  ware.  Since  the  bargain  was  a  separate 
one  for  each  article,  so  that  the  price  could  be  adjusted 
to  the  quality  before  the  work  was  done,  nothing  more 
was  needed  on  the  part  of  the  guild  members  for  the 
purpose  of  "  inriching  themselves  by  their  trades  very 
much." 

But  in  the  later  stages  of  the  industry,  the  merchant- 
function,  and  afterwards  the  employer-function,  were 
separated  from  the  journeyman-function.  It  is  the 
special  function  of  the  merchant  to  watch  over  and 
guard  the  quality  of  the  work,  because  his  bargain  with 
the  consumer  is  an  adjustment  of  the  price  to  the  quality 
demanded.  The  journeyman's  function  is  simply  that 
of  making  the  kind  and  quality  of  goods  ordered  by  the 
merchant.  The  merchant,  in  his  function  as  employer, 
gives  these  orders  to  the  journeyman,  and  consequently, 
when  the  employer-function  is  separated  from  the 
journeyman-function,  the  employer,  as  the  representa- 
tive of  the  merchant,  attends  to  the  quality  of  the  work. 
In  this  way  the  journeyman  has  lost  control  over  quality, 
.and  is  forced  to  adapt  his  quality  to  his  price,  instead  .of 


254  LABOR  AND  ADMINISTRATION 

demanding  a  price  suited  to  his  quality.  So,  when  he 
forms  his  protective  organization,  his  attention  is  directed 
mainly  to  the  compensation  side  of  the  bargain.  In 
proportion  as  the  quality  of  his  work  depends  on  his  rate 
of  pay,  he  indirectly  controls  the  quality,  but  the  pri- 
mary purpose  of  his  organization  is  to  control  the  rate  of 
pay.  This  he  does,  first,  by  demanding  the  same  mini- 
mum rate  of  pay  for  all  market  destinations  of  the  same 
kind  of  work.  It  was  this  demand  that  forced  the  align- 
ment of  classes,  and  drove  the  sympathetic  merchant 
over  into  the  hostile  employers'  association.  The  em- 
ployer could  yield  if  he  confined  himself  to  the  narrow 
field  of  the  "  bespoke  "  market,  but  not  if  he  was  men- 
aced by  the  wider  field  of  the  wholesale  market.  On 
this  account  it  was  possible  in  the  retail-shop  stage  for 
the  interests  of  employer  and  workmen  to  be  harmonious. 
But  the  employer  could  not  yield  in  the  merchant- 
capitalist  stage,  on  that  part  of  the  field  menaced  by 
prison  and  sweatshop  labor.  Consequently,  the  outcome 
of  the  strikes  of  1835  was  the  differentiation  of  the  mar- 
ket into  two  non-competing  levels,  the  higher  level  of 
custom  and  high-grade  shop  work,  controlled  more  or 
less  by  the  cordwainers'  societies  for  the  next  twenty- 
five  years  l  and  the  lower  level  of  inferior  work  con- 
trolled by  prison  and  sweatshop  competition.2 

1  Freedley,  E.  T.,  "Philadelphia  and  its  Manufactories,"  p.  187,  says 
in  1858:   "Making  men's  wear  and  making  women's  wear  are  distinct 
branches.  .  .  .     The  Men's  men  and  Women's  men,  as  the  workmen  are 
distinguished,  have  separate  organizations,  and  neither  know  nor  mingle 
with  each  other." 

2  "In  addition  to  these  there  are  a  large  number  whose  operations, 
though  in  the  aggregate  important,  cannot  easily  be  ascertained.     They 
are  known  by  a  term  more  expressive  than  euphonious,  'garret  bosses' 
who  employ  from  one  to  twelve  men  each ;  and  having  but  little  capital, 
make  boots  and  shoes  in  their  own  rooms,  and  sell  them  to  jobbers  and 


AMERICAN   SHOEMAKERS,    1648-1895         255 

IV 
Knights  of  St.  Crispin,  1868 

We  come  now  to  an  entirely  different  step  in  the 
progress  of  industrial  stages.  Hitherto,  the  only  change 
requiring  notice  has  been  that  produced  by  the  ex- 
tension of  the  market  and  the  accompanying  credit 
system.  These  changes  were  solely  external.  The  next 
change  is  internal.  Prior  to  1837  there  had  been  scarcely 
a  hundred  inventions  affecting  the  tools  used  by  the 
cordwainer.  All  of  these  may  be  described  as  "  devices  " 
rather  than  machines.  Even  as  late  as  1851  all  of  the 
labor  in  the  manufacture  of  shoes  was  hand  labor.  In 
1852,  the  sewing  machine  was  adapted  to  the  making 
of  uppers,  but  this  did  not  affect  the  journeyman  cord- 
wainer, because  the  sewing  of  uppers  had  been  the 
work  of  women.  Even  the  flood  of  inventions  that  came 
into  use  during  the  decade  of  the  'fifties  were  aids  to  the 
journeyman  rather  than  substitutes  for  his  skill.  Indeed, 
some  of  them  probably  operated  to  transfer  the  work  of 
women  to  men,  for  they  required  greater  physical  strength 
and  endurance  in  order  to  develop  their  full  capacity. 
Whether  operated  by  foot  power  or  merely  facilitating 
the  work  of  his  hands,  they  were  essentially  shop  tools 
and  not  factory  machines.  Such  were  the  tin  patterns 
for  cutting,  the  stripper  and  sole-cutter,  adjustable  lasts, 
levellers,  skivers,  and  the  machines  for  heel  making, 
lasting  and  sandpapering.  Quite  different  were  the 
pegging  machine,  introduced  in  1857,  and  especially  the 
McKay  sole-sewing  machine,  introduced  in  1862.  These 

retailers  in  small  quantities  at  low  rates  for  cash.  One  retailer,  who  sells 
$20,000  worth  per  annum,  buys  three-fourths  of  his  stock  from  these 
makers."  Freedley,  p.  188. 


256  LABOR  AND  ADMINISTRATION 

usurped  not  only  the  highest  skill  of  the  workman,  but 
also  his  superior  physique.  The  McKay  machine  did 
in  one  hour  what  the  journeyman  did  in  eighty.  These 
machines  were  quickly  followed  by  others,  either  ma- 
chines newly  invented  or  old  ones  newly  adapted,  but 
all  of  them  belted  up  to  steam.  The  factory  system, 
aided  by  the  enormous  demand  of  government  for  its 
armies,  came  suddenly  forth,  though  it  required  another 
fifteen  years  to  reach  perfection.  It  was  at  the  middle 
of  this  transition  period,  1868  to  1872,  that  the  Knights 
of  St.  Crispin  appeared,  and  nourished  beyond  anything 
theretofore  known  in  the  history  of  American  organized 
labor.  Its  membership  mounted  to  40,000  or  50,000, 
whereas  the  next  largest  unions  of  the  time  claimed 
only  10,000  to  12,000.  It  disappeared  as  suddenly  as 
it  had  arisen,  a  tumultuous,  helpless  protest  against  the 
abuse  of  machinery.  For  it  was  not  the  machine  itself 
that  the  Crispins  were  organized  to  resist,  but  the  sub- 
stitution of  "  green  hands  "  for  journeymen  in  the  op- 
eration of  the  machines.  There  was  but  one  law  which 
they  bound  themselves  by  constitutions,  rituals,  oaths 
and  secret  confederacy  to  enforce  and  to  support  each 
other  in  enforcing :  refusal  to  teach  green  hands  except 
by  consent  of  the  organization.  This  at  least  was  the 
object  of  the  national  organization.  When  local  unions 
once  were  established,  they  took  into  their  own  hands 
the  cure  of  other  ills,  and  their  strikes  and  lockouts 
were  as  various  as  the  variety  of  shops  and  factories 
in  which  they  were  employed.  The  Knights  of  St'. 
Crispin  were  face  to  face  with  survivals  from  all  of  the 
preceding  stages  of  industrial  evolution,  as  well  as  the 
lusty  beginnings  of  the  succeeding  stage.  They  were 
employed  in  custom  shops,  in  retail  and  wholesale- 


AMERICAN   SHOEMAKERS,    1648-1895         257 

order  shops,  in  the  shops  of  the  merchant-capitalist 
and  his  contractors,  in  the  factories  of  the  manufac- 
turer-capitalist. A  comparison  of  the  objects  of  their 
strikes  reveals  the  overlapping  ,of  stages.  All  of  their 
strikes  turned  directly  or  indirectly  on  two  issues,  re- 
sistance to  wage  reductions  and  refusal  to  teach  "  green 
hands."  The  wage  strikes  took  place  mainly  in  the 
shops  of  the  merchant-capitalist,  the  "  green  hand  " 
strikes  in  the  factories.1  The  merchant-capitalist  was 
forced  by  the  competition  of  the  manufacturer,  either 
to  become  a  manufacturer  himself  (or  to  purchase  from 
the  manufacturer),  or  to  cut  the  wages  of  his  journey- 
men and  the  prices  paid  to  his  contractors.  Neither  the 
journeyman's  devices  nor  his  foot  power  machines 
yielded  a  sufficient  increase  of  output  to  offset  his  wage 
reductions.  His  aggravation  was  the  more  intense  in 
that  the  wage  reductions  occurred  only  on  shop  work 
and  not  on  custom  work.  The  anomaly  of  different 
prices  for  the  same  grade  of  work,  which  had  showed 
itself  with  the  extension  of  markets,  was  now  still  more 
exaggerated  and  more  often  experienced  under  the  com- 
petition of  factory  products.  Even  prison  labor  and 
Chinese  labor  were  not  cheap  enough  to  enable  the  mer- 
chant-capitalist to  compete  with  the  product  of  green 
hands  and  steam  power. 

The  factory  succeeded  also  in  producing  a  quality 
of  work  equal  or  even  superior  to  that  produced  by 
the  journeyman.  Consequently  its  levelling  agencies 
reached  upwards  to  all  but  the  topmost  of  the  non- 

1  For  the  detailed  study  upon  which  this  brief  summary  of  the  Knights 
of  St.  Crispin  is  based,  I  am  indebted  to  Mr.  D.  D.  Lescohier,  member  of 
my  research  group.     See  Bulletin  No.  355  of  the  University  of  Wiscon- 
sin, Economics  and  Political  Science  Series,  Vol.  VII,  No.  i. 
S 


258  LABOR  AND  ADMINISTRATION 

competing  levels  on  which  the  journeymen  had  suc- 
ceeded in  placing  themselves,  and  brought  them  down 
eventually  to  its  own  factory  level.  The  Grand  Lodge 
of  the  Knights  of  St.  Crispin  was  the  protest  of  work- 
men whose  skill  of  work,  quality  of  product  and  pro- 
tective unions  had  for  a  generation  preceding  saved 
for  themselves  the  higher  levels  of  the  merchant-capi- 
talist system  against  the  underwash  of  prison  and  sweat- 
shop competition.  It  was  their  protest  against  the  new 
menace  of  cheap  labor  and  green  hands  utilized  by  the 
owners  of  steam  power  and  machinery. 

It  is  not  my  purpose  here  to  describe  the  familiar 
factory  system.  Its  place  in  the  evolution  of  industrial 
stages  is  summarized  in  the  appended  table.  Suffice 
it  to  note  that  in  the  shoe  industry  the  factory  system 
was  established  in  substantially  its  present  form  in 
the  early  part  of  the  'eighties;  that  detailed  piece- 
work has  taken  the  place  of  team-work  and  hand-work ; 
that  the  last  vestige  of  property-right  has  left  the  worker ; 
that  the  present  form  of  labor  organization,  the  Boot  and 
Shoe  Workers'  Union,  has  endeavored,  since  1895,  to 
bring  together  all  classes  of  employees,  men  and  women, 
in  a  single  industrial  union  rather  than  a  partial  trade 
union ;  and  that  the  two  classes  of  protective  organiza- 
tions have  asserted  their  political  power  for  protection 
against  low  levels  of  competition,  the  merchant-manu- 
facturer against  free  trade  in  foreign  products,  the  wage- 
earner  against  foreign  immigrants,  prison  labor,  child 
labor  and  long  hours  of  labor. 


AMERICAN   SHOEMAKERS,    1648-1895        259 


Industrial  Evolution  in   Europe  and  America. 
Organization  and  Legislation  for  Protection. 

The  foregoing  sketch  of  industrial  evolution  i 
America  brings  into  prominence  the  part  played  by  the 
ever- widening  area  of  competition,  fend  the  effort  of  pro- 
tective organizations  to  ward  off  the  peculiar  competitive 
menace  of  each  stage  of  development.  From  this 
standpoint  the  sketch  may  be  compared  with  the  in- 
vestigations of  Marx,  Schmoller  and  Bucher.  Karl 
Marx  was  the  first  to  challenge  the  world  with  a  keen 
analysis  of  economic  evolution,  but  his  standpoint  is 
that  of  the  mode  of  production  and  not  the  extension 
of  the  market.  His  two  assumptions  of  a  given  "  use 
value  "  and  a  given  "  average  social  labor  "  serve  to 
obliterate,  the  one  the  part  played  by  the  price-bargain, 
the  other  the  part  played  by  the  wage-bargain.  With 
these  assumptions  out  of  the  way  he  is  able  to  concern 
himself  with  the  production  of  "  surplus  value  "  by  his 
theory  of  the  working  day  and  the  cost  of  living.  But 
these  are  secondary  factors,  results,  not  causes.  The 
primary  factors  are  on  the  side  of  the  market  where 
competition  is  carried  on  at  different  levels.  Instead 
of  "  exploitation,"  growing  out  of  the  nature  of  produc- 
tion, our  industrial  evolution  shows  certain  evils  of  com- 
petition imposed  by  an  "  unfair  "  menace.  Instead, 
therefore,  of  an  idealistic  remedy  sought  for  in  common 
ownership,  the  practical  remedy  always  actually  sought 
out  has  been  the  elimination  of  the  competitive  menace 
through  a  protective  organization  or  protective  legis- 
lation. 


260  LABOR  AND   ADMINISTRATION 

Schmoller  and  Biicher  have  both  avoided  the  narrow 
abstractions  of  Marx,  because  they  have  traced  out 
the  actual  development  of  industry  through  access  to 
a  wealth  of  historical  material  not  available  to  their 
predecessor.  Schmoller,  with  his  ever-widening  area 
of  village,  town,  territory  and  state  under  a  single  polit- 
ical control  leading  to  extension  of  markets,1  and 
Biicher  with  his  ever-widening  area  of  the  markets 
leading  to  political  extension,2  have  cultivated  the 
field  where  the  true  explanation  of  industrial  evolution 
shall  be  found.  But  there  are  certain  considerations 
in  European  history  which  have  obliterated  or  con- 
fused the  pure  economic  facts.  Industrial  evolution, 
considered  as  a  mere  economic  process,  had  to  work 
its  way  up  through  superimposed  racial,  military,  tribal, 
feudal,  ecclesiastical  and  guild  regulations  and  restric- 
tions. These  have  been  especially  disturbing  to  Schmol- 
ler, but  have  been  delightfully  brushed  aside  by  Biicher.3 
At  the  same  time,  in  both  cases  they  have  operated  to 
cover  up  certain  significant  stages  and  factors.  For 
example,  the  retail-shop  and  the  wholesale-order  stages 
of  the  American  shoe  industry  are  not  as  strikingly 
apparent  in  the  European  process,  probably  because  the 
powerful  guild  regulations  served  to  maintain  a  uniform 
price  for  custom  work,  retail  work  and  wholesale-order 
work.4  But  the  guilds  were  unable  to  cope  with  the  cut 
prices  of  wholesale-speculative  work.  Consequently, 
Schmoller  and  Biicher  pass  over  with  slight  emphasis 
from  the  primitive  guild  stage  of  Boston,  1648,  to  the 

1  Schmoller,  "  Grundriss,"  etc.,  Vol.  I,  p.  254  ff. 

2  Ibid.,  p.  89  ff.,  135  ff. 

3  E.g.  their  controversy  over  the  influence  of  heredity  in  "Jahrbuch 
f.  Gesetzgebung,"  Vol.  XVII,  p.  303;   Vol.  XVIII,  p.  318. 

4  Sombart,  "Der  Moderne  Kapitalismus,"  Vol.  I,  p.  95. 


AMERICAN   SHOEMAKERS,    1648-1895         261 


merchant-capitalist  stage  of  1835.  But  it  is  not  enough 
to  say  that  the  retail-merchant  and  wholesale-order 
stages  were  only  "  transitional,"  for  they  bring  to  light 
the  fundamental  economic  forces  at  work.  They  reveal 
the  segregation  of  the  merchant-function  and  the  joint 
effort  of  both  employer  and  journeyman  to  extend  mar- 
kets. They  modify  materially  Biicher's  modified 
theory  of  exploitation  through  intermediary  merchants, 
by  concentrating  attention  on  the  competitive  menace 
and  the  function  of  protection.  It  is  this  bald  simplicity 
of  American  individualism,  without  much  covering  of 
races,  armies,  guilds  or  prelates,  that  permits  us  to  trace 
out  all  of  the  economic  sutures  in  their  evolution  from 
infancy  to  manhood. 

The  menace  of  competition  may  conveniently  be 
described  as  internal  and  external.  The  former  arises 
within  the  area  of  the  existing  market,  the  latter  pro- 
ceeds from  cheap  producers  abroad.  With  the  ever- 
widening  area  of  political  control  these  external  menaces 
become  internal,  and  it  is  this  moving  frontier  that 
determines  the  scope  and  character  of  protective  or- 
ganization and  protective  legislation. 

Throughout  the  course  of  industrial  evolution  the 
part  played  by  the  merchant  stands  out  as  the  deter- 
mining factor.  The  key  to  the  situation  is  at  all  times 
the  price-bargain.  It  is  the  merchant  who  controls 
both  capital  and  labor.  If  the  merchant  has  a  market, 
he  can  secure  capital.  Even  the  modern  "  manufac- 
turer "  is  first  of  all  the  merchant.  The  "conflict  of 

i. 

capital  and  labor  "  is  a  conflict  of  market  and  labor, 
of  merchant  and  wage-earner,  of  prices  and  wages. 
With  the  extension  of  the  market  the  merchant-func- 
tion is  the  first  to  separate,  unless  prevented  by  guild 


262  LABOR  AND  ADMINISTRATION 

or  other  regulations,  and  with  each  further  extension 
the  separation  is  greater.  Just  as  the  first  "  masters' 
society  "  of  1789  was  really  a  retail  merchants'  asso- 
ciation, so  the  modern  "  manufacturers'  association  " 
is  a  price-regarding  association.  Capital  follows  the 
merchant,  and  the  manufacturers'  protective  organi- 
zation is  an  organization  to  protect  prices.  When 
the  extension  of  the  market  provokes  the  conflict  of 
prices  and  wages,  the  wage-earners  resort  to  indepen- 
dent protective  policies.  Then  the  manufacturer  turns, 
for  the  time,  from  the  market  and  faces  the  workman. 
His  "  employers'  association "  is  wholly  different  in 
method,  object  and  social  significance,  and  usually  in 
personnel  from  his  "  manufacturers'  association."  1 

The  conflict  is  ultimately  one  between  the  interests 
of  the  consumer  and  the  interests  of  the  producer. 
Wherever  the  consumer  as  such  is  in  control,  he  favors 
the  marginal  producer,  for  through  him  he  wields  the 
club  that  threatens  the  other  producers.  Consequently, 
the  producers  resort  either  to  private  organizations 
equipped  with  coercive  weapons  to  suppress  their  menac- 
ing competitor,  or  else  they  seek  to  persuade  or  compel 
the  government  to  suppress  him.  In  this  way  the 
contest  of  classes  or  interests  enters  the  field  of  politics, 
and  the  laws  of  the  land,  and  even  the  very  framework 
of  government,  are  the  outcome  of  a  struggle  both  to 
extend  markets  and  to  ward  off  their  menace. 

1  The  merchant  and  employer  functions  appear  throughout  different 
industrial  stages  and  industries  under  different  names,  as  follows : 


Merchant 


Master  workman 

Retail  master  [Master  workman 

Wholesale  manufacturer        Employer^  Contractor 

Merchant-capitalist  ^Manufacturer 

Manufacturer 


AMERICAN   SHOEMAKERS,    1648-1895         263 

In  the  early  stages  the  agricultural,  as  distinguished 
from  the  "  industrial  "  interests,  are  in  control,  and 
they  stand  to  the  shoemakers  as  consumers.  Conse- 
quently, if  the  industrial  interests  secure  protection, 
they  must  do  it  by  carving  out  a  jurisdiction  of  their 
own,  enfranchised  with  political  immunities  and  self- 
governing  organizations.  In  this  struggle  did  the  guilds 
of  Europe  rid  themselves  of  feudal  agriculture.  But 
in  colonial  America  only  the  soft  petition  of  the  Boston 
shoemakers  and  coopers  in  1648  shows  the  high-water 
mark  of  the  guild.  Here  protection  was  grudgingly 
granted  against  the  internal  menace  of  bad  ware  and 
itinerant  cobblers.  In  later  times,  a  manufacturing 
colony,  like  Pennsylvania,  enacted  protective  tariffs 
against  external  menace,  and  in  1787  the  commercial 
and  manufacturing  interests,  now  reaching  out  for 
wholesale  trade,  secured  in  the  Federal  Constitution 
the  political  instrument  of  their  mercantile  aspirations. 
Forthwith,  as  we  have  seen,  the  shoemakers  of  Phila- 
delphia experienced  the  stimulus  of  this  extension  of 
markets  and  entered  the  wholesale-order  stage  of  their 
industry.  At  once  what  had  been  an  external  menace 
now  became  internal  on  this  wider  and  lower  level  of 
competition,  resulting  in  the  separation  and  struggle  of 
classes.  The  wage-class  began  its  long  contest  for  the 
political  immunity  of  a  private  organization  to  suppress 
the  "  scab  "  in  his  many  forms  of  non-unionist,  sweat- 
shop worker,  green  hand,  Chinaman  and  immigrant. 
But,  prior  to  the  merchant-capitalist  stage,  this  sepa- 
ration of  labor  from  merchant  was  sporadic  and  reconcil- 
able. The  employer,  as  such,  with  his  specialized 
wage-bargain,  had  only  occasionally  appeared.  Mer- 
chant and  journeyman  were  at  one  in  their  effort  to 


264  LABOR  AND  ADMINISTRATION 

protect  the  price-bargain.  Together  they  joined  in 
their  century-long  effort,  ever  more  and  more  successful, 
to  use  the  federal  constitution  for  the  suppression  of  the 
cheap  ware  of  the  foreign  producer.  But  after  the  mer- 
chant-capitalist period,  the  slogan  of  the  protective 
tariff  became  protection  for  labor,  where  formerly  it  had 
been  protection  for  capital.  Eventually,  with  the  further 
separation  of  labor  under  its  own  leaders,  protection 
took  the  additional  form  of  suppressing  the  Chinaman 
and  the  alien  contract-laborer.  Turning  to  the  state 
governments,  labor  has  summoned  its  political  strength 
for  the  suppression  of  the  internal  menace  of  long  hours, 
prison  labor,  child  and  woman  labor.  And  finally,  where 
neither  politics  nor  organizations  suffice  to  limit  the 
menace  of  competition,  both  "  manufacturers "  and 
workmen  in  the  shoe  trade  strive  to  raise  themselves 
above  its  level  by  cultivating  the  good  will  of  the  con- 
sumers, the  former  by  his  trade  mark,  the  latter  by  the 
union  label. 

Thus  have  American  shoemakers  epitomized  Amer- 
ican industrial  history.  Common  to  all  industries  is 
the  historical  extension  of  markets.  Variations  of  form, 
factors  and  rates  of  progress  change  the  picture,  but  not 
the  vital  force.  The  shoemakers  have  pioneered  and 
left  legible  records.  Their  career  is  "  interpretative," 
if  not  typical. 


APPENDIX  265 

APPENDIX 

"COMPANY  OF   SHOOMAKERS,"  BOSTON,  16481 

Vppon  the  petition  of  the  shoemakers  of  Boston,  &  in  consid- 
eration of  of  the  complaynts  which  haue  bin  made  of  the  damag 
which  the  country  sustaynes  by  occasion  of  bad  ware  made  by 
some  of  that  trade,  for  redresse  hereof,  its  ordred,  &  the  Court  doth 
hereby  graunt  libtie  &  powre  vnto  Richard  Webb,  James  Euerill, 
Robt  Turner,  Edmund  Jackson,  &  the  rest  of  the  shoemakers 
inhabiting  &  howskeepers  in  Boston,  or  the  greatest  number  of 
them,  vppo  due  notice  giuen  to  the  rest,  to  assemble  &  meete  to- 
gether in  Boston,  at  such  time  &  times  as  they  shall  appoynt,  who 
beinge  so  assembled,  they,  or  the  greater  number  of  them,  shall 
haue  powre  to  chuse  a  master,  &  two  wardens,  with  fowre  or  six 
associats,  aclarke,  a  sealer,  a  searcher,  &  a  beadle,  with  such  other 
officers  as  they  shall  find  nessessarie ;  &  these  officers  &  ministers, 
as  afforesd,  every  yeare  or  oftener,  in  case  of  death  or  departure 
out  of  this  jurisdiction,  or  remoueall  for  default,  &c.,  which  officers 
&  ministers  shall  each  of  them  take  an  oath  sutable  to  theire  places 
before  the  Gounor  or  some  of  the  magists,  the  same  beinge  pscribed 
or  allowed  by  this  Court ;  &  the  sd  shoemakers  beinge  so  assembled 
as  before,  or  at  any  other  meettinge  or  assembly  to  be  appoynted 
from  time  to  time  by  the  master  &  wardens,  or  master  or  wardens 
with  two  of  the  associats,  shall  haue  power  to  make  orders  for  the 
well  gouerninge  of  theire  company,  in  the  mannaginge  of  their 
trade  &  all  the  aff ayres  therevnto  belonging,  &  to  change  &  reforme 
the  same  as  occasion  shall  require  &  to  anex  reasonable  pennalties 
for  the  breach  of  the  same ;  provided,  that  none  of  theire  sd  orders, 
nor  any  alteration  therein,  shalbe  of  force  before  they  shalbe  pvsed 
&  allowed  of  by  the  Court  of  that  county,  or  by  the  Court  of  As- 
sistants. And  for  the  better  executing  such  orders,  the  sd  master 
&  wardens,  or  any  two  of  them  with  4  or  6  associats,  or  any  three 
of  them,  shall  haue  power  to  heare  &  determine  all  offences  agaynst 
any  of  theire  sd  orders,  &  may  inflict  the  pennalties  pscribed  as 
aforesd,  &  assesse  fines  to  the  vallew  of  forty  shillings  or  vnder  for 
one  offence,  &  the  clarke  shall  giue  warrent  in  writinge  to  the  beadle 

1  "  The  Records  of  the  Colony  of  the  Massachusetts  Bay  in  New 
England,"  Vol.  Ill,  p.  132. 


266  LABOR  AND  ADMINISTRATION 

to  leuie  the  same,  who  shall  haue  power  therevppon  to  leuie  the 
same  by  distresse,  as  is  vsed  in  other  cases ;  &  all  the  sd  fines  & 
forfeitures  shalbe  imployd  to  the  benefit  of  the  sd  company  of 
shoomakers  in  generall,  &  to  no  other  vse.  And  vppon  the  com- 
playnt  of  the  sd  master  &  wardens,  or  theire  atturny  or  advocate, 
in  the  County  Court,  of  any  pson  or  psons  who  shall  vse  the  art 
or  trade  of  a  shoomaker,  or  any  pt  thereof,  not  beinge  approued 
of  by  the  officers  of  ye  sd  shomakers  to  be  a  sufficient  workman, 
the  sd  Court  shall  haue  power  to  send  for  such  psons,  &  suppresse 
them ;  provided  also,  that  the  prioritie  of  theire  graunt  shall  not 
giue  them  precedency  of  other  companies  that  may  be  graunted ; 
but  that  poynt  to  be  determined  by  this  Court  when  there  shalbe 
occasio  thereof;  provided  also,  that  no  vnlawfull  combination 
be  made  at  any  time  by  the  sd  company  of  shoomakers  for  in- 
hancinge  the  prices  of  shooes,  bootes,  or  wages,  whereby  either  or 
owne  people  may  suffer ;  provided  also,  that  in  cases  of  dificultie, 
the  sd  officers  &  associats  doe  not  pceede  to  determine  the  cause 
but  by  the  advice  of  the  judges  of  that  county ;  provided,  that  no 
shoomaker  shall  refuse  to  make  shooes  for  any  inhabitant,  at  reas- 
onable rates,  of  theire  owne  leather,  for  the  vse  of  themselues  & 
families,  only  if  they  be  required  therevnto ;  provided,  lastly,  that 
if  any  pson  shall  find  himselfe  greiued  by  such  excessiue  fines  or 
other  illegall  pceedinges  of  the  sd  officers,  he  may  complayne 
thereof  at  the  next  Court  of  that  county,  who  may  heare  &  deter- 
mine the  cause.  This  commission  to  continue  &  be  of  force  for 
three  yeares,  &  no  longer,  vnles  the  Court  shall  see  cause  to  con- 
tinue the  same. 

The  same  comission,  verbatim,  with  the  same  libtie  &  power 
for  the  same  ends,  vpon  the  like  grounds  is  giuen  vnto  Thomas 
Venner,  John  Millum,  Samuel  Bidfeild,  James  Mattocks,  Wm. 
Cutter,  Bartholomew  Barlow,  &  the  rest  of  the  coops  of  Boston  & 
Charlestowne,  for  the  pventing  abuses  in  theire  trade.  To  con- 
tinue only  for  three  yars,  as  the  former,  mutatis  mutandis. 


CHAPTER  XV 

THE  'LONGSHOREMEN  OF  THE  GREAT  LAKES1 

BEGINNING  in  1892  as  a  convention  of  delegates  from 
ten  local  unions  of  lumber  handlers  from  Ashland  to 
Buffalo,  under  the  name  of  the  "  National  'Longshore- 
men's Association  of  the  United  States  " ;  changing  its 
name  to  "International"  in  1895  to  take  in  Canada; 
changing  again  in  1902  to  "International  'Longshoremen, 
Marine  and  Transport  Workers'  Association,"  -  this  or- 
ganization now  includes  forty  different  occupations,  and 
claims  100,000  members,  of  whom  one-half  are  on  the 
Great  Lakes.  As  stated  in  its  Directory,  it 

embraces  in  its  membership  and  grants  charters  to  Loaders  and 
Unloaders  of  all  Vessels  and  Ships ;  Marine  and  Warehouse  Pack- 
age Freight  Handlers;  Grain  Elevator  Employees;  Dock  and 
Marine  Engineers ;  Dock  Hoisters,  Firemen  and  Marine  Repair- 
men; Marine  Firemen,  Oilers  and  Water  Tenders;  Licensed 
Pilots  and  Tugmen ;  Tug  Firemen  and  Linemen ;  Marine  Divers, 
Helpers,  Tenders  and  Steam  Pump  Operators ;  Steam  Shovel  and 
Dredge  Engineers;  Drill  Boat  Workers;  Dredge  Firemen  and 
Laborers  on  Dredge  Scows;  Marine  Pile  Drivers;  Lumber  In- 
spectors, Tallymen  and  Lumber  Handlers;  Top  Dockmen; 
Cotton  and  Tobacco  Screwmen ;  General  Cargo  Dock  Laborers ; 
Pool  Deck  Hands  and  Fishermen,  —  along  the  Great  Lakes, 
Rivers,  and  Sea-coasts  in  the  United  States,  Canada,  Central  and 
South  America  and  new  United  States  possessions. 

At  one  time  the  organization  claimed  railway  freight 
handlers,  sawmill  workers,  and  all  men  employed  in 
lumber  yards;  but  it  has  receded  from  these  claims. 

1  Quarterly  Journal  of  Economics,  November,  1905. 
267 


268  LABOR  AND  ADMINISTRATION 

On  the  other  hand,  it  is  now  organizing  the  pilots  and 
mates  on  the  lake  steamers,  and  has  demanded  the  revo- 
cation of  the  charter  of  the  Seamen's  Union.1  The  wages 
and  salaries  of  its  members  range  from  those  of  laborers 
at  22  cents  an  hour  to  those  of  divers  at  $10  or  $15  and, 
in  some  instances,  $25  a  day,  and  tug-boat  captains  at 
$165  a  month  and  board.  In  thus  reaching  out  for  all 
employees  engaged  in  water  transportation,  the  Direc- 
tory says : 

The  business  of  handling  transporta  ion  is  now  unified.  It  pre- 
sents a  distinct  branch  of  commerce  to  which  has  been  applied  all 
the  known  scientific  principles  of  the  organization  of  capital  and 
labor. 


An  account  of  the  lumber  handling  "  locals  "  will  give 
a  clew  to  the  other  locals.  They  are  the  oldest,  those  at 
Bay  City  and  Saginaw  running  back  to  1870,  and  the  one 
at  Chicago  to  1877.  The  Chicago  and  Detroit  locals 
have  furnished  the  president,  D.  C.  Keefe,  and  the  sec- 
retary, H.  C.  Barter,  whose  experience  and  policies  have 
guided  the  International  throughout  its  history.  The 
aim  of  the  lumber  locals  from  the  beginning  has  been 
to  become  cooperative  contractors.  In  their  first  pre- 
amble they  say,  — 

Having  proved  through  experience  that  the  system  of  loading 
and  unloading  boats  by  individual  jobbers  is  one  that  robs  our 
labor  of  its  wages,  we  have  determined  to  use  every  legitimate 
means  in  our  power  to  suppress  it,  and  to  give  every  man  an  equal 
opportunity  to  secure  work  and  receive  the  profits  of  his  labor. 

1  Disallowed  by  the  American  Federation  of  Labor.  The  organiza- 
tion has  now  gone  back  to  its  earlier  name,  "International  'Longshore- 
men's Association."  The  general  scheme  of  organization  remains, 
except  as  indicated  in  footnotes  (1913). 


THE   'LONGSHOREMEN  269 

And  the  "  Rules  for  Locals  "  declare  1  "  all  Locals  are 
requested  to  endeavor  to  abolish  the  stevedore  system  by 
taking  the  work  themselves  directly."  This  object  has 
been  kept  in  the  front  at  all  times,  and  is  the  key  to 
an  understanding  of  much  that  the  union  has  done  and 
is  trying  to  do.  In  1905  the  president  of  the  union  ad- 
dressed the  convention  of  Lake  Carriers  on  this  subject, 
as  follows : 2 

A  year  ago  we  urged  your  cooperation  to  assist  us  in  bringing 
about  the  abolition  of  the  stevedore  system  in  connection  with  the 
handling  of  grain  at  Chicago,  in  which  I  am  pleased  to  say  that 
our  efforts  were  quite  successful,  and  since  then  the  grain  has  been 
handled  to  the  entire  satisfaction  of  all  concerned.  To  my  mind 
there  can  be  no  suitable  apology  offered  for  the  further  continua- 
tion of  the  obnoxious  practice  anywhere.  We  stand  ready  and 
willing  to  furnish  a  guarantee  that  we  will  do  all  the  work  that 
properly  belongs  to  our  organization  to  the  entire  satisfaction  of 
the  Lake  Carriers  and  employers  generally.  .  .  .  The  system  is 
a  reflection  on  the  intelligence  of  the  American  worker,  maintained 
by  the  employer,  where  the  employee  is  compelled  to  pay  tribute 
to  a  drone  for  the  privilege  of  working.  We  again  pray  your  hon- 
orable body  to  unite  with  us  in  bringing  about  the  complete  aboli- 
tion of  this  unjust  system. 

The  stevedore  was  usually  a  labor  contractor  without 
capital.  He  furnished  the  men  for  loading  or  unloading 
the  boats  on  contracts  made  with  the  captains  or  owners. 
At  the  Gulf  ports  the  stevedores  have  formed  associa- 
tions for  regulating  charges ;  but  on  the  Lakes  they  were 
usually  competitors.  Often  they  were  saloon-keepers 
and  ward  politicians,  or  partners  of  such ;  and  the  con- 
ditions on  which  they  hired  men  included  patronage  of 
the  saloon  and  political  errands.  The  men  "  bunked  " 

1  Sec.  II. 

2  Proceedings,  Fourteenth  Annual  Convention,  p.  34. 


270  LABOR  AND   ADMINISTRATION 

in  the  saloon  in  order  to  be  ready  when  a  boat  arrived, 
and  they  received  their  pay  in  the  saloon. 

The  cooperative  system,  however,  is  not  practicable 
as  a  substitute  for  the  stevedore,  except  on  a  piece-work 
basis.  For  example,  in  the  loading  of  lumber  on  the 
upper  lakes  the  conditions  vary  greatly.  In  some  cases 
lumber  is  run  down  through  chutes;  and,  where  it  is 
taken  from  the  docks,  it  is  brought  from  different  parts, 
so  that  it  is  impossible  to  agree  in  advance  upon  a  rate 
per  thousand  feet.  At  50  cents  per  hour  in  wages  the 
cost  to  the  owner  varies  from  23  cents  to  90  cents  per 
thousand  feet.  But  the  unloading  of  lumber  is  uniform. 
A  man  in  the  boat  passes  the  lumber  to  a  man  opposite 
on  the  dock,  and  it  is  piled  one  tier  in  depth.  The  prices 
paid  by  the  vessel  owner  have  always  been  made  on  a 
piece-rate,  both  to  the  stevedore  when  he  hired  the  men 
by  the  hour  and  to  the  union  when  it  took  the  contract. 
In  the  latter  case  the  local  union  makes  a  contract  for 
the  season  with  the  vessel  owner,  or  the  owners'  or 
dealers'  association,  containing  a  scale  of  prices,  be- 
ginning, say,  "  white  pine,  i  inch,  ij  inch,  and  i|  inch, 
No.  3  and  better,  10  feet  and  over,  at  33  cents  per  M.," 
and  so  on  for  different  sizes  and  grades.  To  do  the 
work,  the  union  distributes  its  members  in  gangs.  The 
Cleveland  local,  No.  3,  with  200  members,  has  8  gangs 
of  25  men  each.  The  Buffalo  local  has  36  men  in  a 
gang.  One,  two,  or  even  three  gangs  may  work  on  a  boat, 
according  to  its  size.  Each  gang  has  a  stevedore  or 
boss,  or,  in  a  German  local,  a  Gangfuhrer,  who  is  elected 
by  the  union  at  the  same  time  and  for  the  same  period 
as  the  other  officers.  This  boss  works  with  the  men,  if 
necessary ;  but,  since  the  gang  works  in  pairs  and  he  is 
the  odd  man,  his  actual  work  consists  in  placing  the 


THE   'LONGSHOREMEN  271 

men  and  overseeing  the  work.  In  any  dealings  between 
the  captain  or  lumber  dealer  and  the  union,  only  the 
business  agent  or  the  gang  boss  has  the  right  to  speak. 
If  any  other  member  takes  part,  he  is  reported  by  the 
agent  or  boss  at  the  next  meeting  of  the  union,  and,  if 
found  guilty,  is  punished  as  the  union  sees  fit.  If  he 
creates  disturbances  at  the  union  office  or  at  work,  he 
may  be  suspended  eight  days,  and  on  third  offence  ex- 
pelled.1 The  business  agent  (Geschaflsfuhrer)  has  charge 
of  all  the  bosses  and  the  gangs.  The  bosses  take  their 
orders  from  him.  He  makes  a  report  at  union  head- 
quarters two  or  three  times  a  day  of  the  boats  to  be 
unloaded,  and  especially  sees  to  it  that  each  gang  gets 
its  turn.  If  this  equalizing  of  work  cannot  be  done 
from  week  to  week,  it  is  evened  up  towards  the  close  of 
the  season,  so  that  one  man's  earnings  are  very  nearly 
the  same  as  those  of  all  other  men  in  the  union.  In  fact, 
the  Cleveland  union  of  Germans,  on  yearly  earnings  of 
$487,  has  come  within  75  cents  of  bringing  the  mem- 
bers out  equal.  Other  locals  earning  from  $500  per 
member  at  Chicago  to  $750  at  Tonawanda  2  have  not 
been  able  to  equalize  so  exactly.  The  business  agent  is 
fined  and  even  ousted,  if  he  does  not  keep  the  turns 
equalized. 

The  members  of  the  gang  are  required  to  obey  the  gang 
boss  and  to  be  industrious  and  punctual,  and  they  cannot 
leave  the  job  until  it  is  finished.  If  disobedient,  the 
gang  boss  can  lay  them  off.  If  they  have  a  grievance, 
they  must  wait  and  bring  it  up  in  union  meeting ;  and 
the  gang  boss  can  be  fined  or  suspended  if  he  is  to  blame. 
After  the  ship  is  unloaded,  the  boss  collects  the  amount 

1  Constitution,  Local  No.  3,  Cleveland,  p.  13. 

2  Raised  to  $1100  in  1912. 


272  LABOR  AND  ADMINISTRATION 

due  from  the  captain,  but  he  must  take  with  him  one 
member  of  the  gang  as  a  witness.  He  has  the  right  to 
inspect  the  original  bill  of  lading  in  order  to  verify  the 
amount.  He  takes  this  to  the  union  headquarters,  and 
divides  it  equally  with  all  the  members  of  the  gang.  His 
own  share  is  exactly  the  same  as  that  of  the  other  men  in 
his  gang,  with  10  cents  added  for  each  boat  to  pay  book- 
keeping expenses.  Finally,  he  makes  a  report  at  the 
union  meeting  of  the  work  done  and  the  amounts  received 
and  distributed. 

This  is  the  method  followed  by  all  of  the  lumber  un- 
loading locals  except  those  at  Chicago,  Milwaukee  and 
Michigan  City.  At  these  ports  the  gang  bosses  are 
selected  by  the  captain  or  dealer.  The  latter  method  is 
the  one  also  followed  by  the  ore  unloaders  and  the  coal 
loaders,  even  though  they  are  paid  by  the  ton.  For  a 
single  year  the  ore  shovellers  at  Cleveland  tried  the  plan 
of  electing  their  gang  bosses,  but  their  experience  was 
discouraging.  Factions  were  formed  within  the  union, 
popular  favorites  and  skilful  wire-pullers  secured  elec- 
tion for  themselves  and  their  friends  or  relatives,  and 
the  union  was  weakened  by  dissensions.  Since  that  trial 
the  superintendent  selects  a  gang  boss  from  among  the 
members  of  each  gang,  and  the  union,  as  well  as  the  su- 
perintendent, is  much  better  satisfied  with  the  selections. 
But  the  union  assigns  the  members  to  'the  respective 
gangs. 

Local  No.  205,  ore  shovellers,  for  example,  of  200  mem- 
bers, is  divided  into  eight  gangs,  of  which  two  are  Irish, 
one  is  German,  one  is  Polish,  one  is  Croatian,  and  three 
are  mixed.  But  each  gang  is  again  divided  into  three 
sections  of  eight  members  each ;  and  the  sections  of  the 
mixed  gangs  are  also  based  on  race  lines,  one  gang,  for 


THE   'LONGSHOREMEN  273 

example,  being  composed  of  one  Polish  section,  one  Ger- 
man section,  and  one  Irish  section.  Some  sections  have 
Irish  and  Germans  together,  but  otherwise  the  races  are 
usually  separated.  Each  section  works  in  one  hatch  of 
the  boat,  where  they  load  the  buckets  by  shovel,  which 
then  are  hoisted  by  the  engineer,  or  operator.  A  boat 
with  nine  hatches  will  have  three  gangs  at  work,  the  boss 
of  each  gang  belonging  to  the  nationality  of  the  gang, 
except  in  the  case  of  mixed  gangs,  where  he  is  usually  an 
Irishman.  The  gang  boss  has  the  same  duties  and  is 
governed  by  the  union  in  the  same  manner  as  when 
elected.  The  union  can  even  secure  his  dismissal,  but 
this  must  be  done  by  lodging  a  grievance  under  the  arbi- 
tration agreement  with  the  association  of  carriers  or  dock 
managers,  as  the  case  may  be.  He  is  a  member  of  the 
gang,  and  receives  exactly  the  same  share  of  the  gang's 
earnings  as  the  others.  But  he  does  not  work  in  the 
hold.  He  watches  the  machinery,  to  see  that  it  is  in 
working  order  and  that  repairs  are  promptly  made.  He 
watches  the  gang,  to  see  that  no  one  is  shirking ;  and  he 
has  authority  to  lay  off  a  member,  subject  to  appeal  to 
the  union.  The  union  generally  has  also  its  business 
agent  to  preserve  the  equality  of  turns  among  the  gangs, 
to  inspect  bills  of  lading  and  to  verify  the  amounts  due 
for  unloading.  Since  the  operating  companies  are  large 
concerns  and  have  the  contracts  for  unloading  many 
vessels,  pay  day  is  arranged  once  a  week  instead  of  col- 
lecting the  amount  due  on  each  boat  when  it  is  finished, 
as  is  done  by  the  lumber  locals.  Both  the  business 
agent  and  the  gang  bosses  keep  these  accounts  for  their 
men. 

Before  the  union  was  organized,  the  gangs  were  hired 
and  made  up  by  foremen  to  whom  their  earnings  were 


274  LABOR  AND   ADMINISTRATION 

paid  and  by  whom  they  were  distributed  to  the  men, 
usually  in  a  saloon  kept  by  a  friend  or  brother.  Any 
complaint  or  grievance  was  followed  by  dismissal.  No 
record  could  be  kept  of  the  amount  of  work  done,  except 
when  the  ore  was  loaded  in  cars  and  the  weight  was  kindly 
furnished  by  the  railroad  yardman.  It  was,  of  course, 
suspected  that  the  foreman  pocketed  a  share  of  the  pro- 
ceeds. Now  the  men  receive  their  pay  in  envelopes  at 
the  companies'  offices,  and  the  business  agent  is  at  hand 
to  verify  all  accounts  and  take  up  all  complaints  or  dis- 
crepancies with  the  superintendent.  The  foreman  has 
disappeared,  and  in  his  place  is  the  cooperative  gang  boss, 
sharing  equally  with  his  fellows.  This  change  alone, 
apart  from  the  increase  in  tonnage  rates,  has  added 
materially  to  the  earnings  of  the  shovellers. 

As  already  stated,  the  cooperative  plan  is  impracticable 
where  the  men  are  paid  by  the  hour,  and  the  progress  of 
improvement  in  hoisting  machinery  has  substituted 
hourly  wages  for  tonnage  rates.  Within  the  past  five 
years  automatic  "  grab  buckets,"  or  "  clam  shells,"  have 
been  introduced,  and  are  operated  by  the  hoisting  engi- 
neer. The  shoveller  is  not  needed  except  to  clean  out 
the  corners  after  the  boat  is  practically  unloaded.  The 
ore  is  even  pulled  from  the  sides  up  to  the  hatches,  where 
the  buckets  can  reach  it,  by  means  of  road  shovels  or 
great  iron  hoes  operated  by  men  in  the  hold  with  cables 
from  a  steam  or  electric  winch.  The  men  working  in  the 
holds  with  this  automatic  machinery  get  28  cents  an 
hour  but  it  is  stipulated  that  they  shall  be  paid  during 
the  time  the  machinery  is  working  in  the  boat.  This 
gives  them  two  to  four  hours'  full  pay  before  the  buckets 
get  down  deep  enough  for  the  road  shovel  or  the  hoe  to 
begin.  Already  six  of  the  eight  gangs  in  Local  No.  205 


THE   'LONGSHOREMEN  275 

have  been  put  on  the  automatic  machines,  leaving  but 
two  gangs  on  the  tonnage  or  cooperative  basis.  On  these 
machines  their  earnings  are  much  less.  At  14  cents 
a  ton  for  shovelling  they  earn  55  to  60  cents  an  hour, 
or  about  $600  a  year,  as  against  28  cents  an  hour,  or 
$500  a  year,  on  the  hourly  basis.  On  the  other  hand, 
however,  the  hoisters  operating  the  machines  have 
had  an  increase,  since  they  joined  the  union,  from  $60 
or  $65  a  month  of  84  hours  per  week,  to  $80  or  $105 
per  month  of  66  hours  a  week.  The  work  of  the  shovel- 
lers is,  of  course,  much  harder  than  that  of  the  laborers 
at  the  automatic  buckets.  On  hot  days  they  are  naked 
to  the  waists.  There  is  no  period  of  waiting  on  full 
pay.  But,  notwithstanding  the  harder  work,  there  is 
great  dissatisfaction  among  the  younger  and  stronger  men 
if  they  are  not  permitted  to  work  at  shovelling  on  the  old- 
style  buckets  at  the  higher  earnings.  The  older  and  less 
active  men  seek  the  easier  conditions  with  the  lower  earn- 
ings. There  is  also  a  wide  difference  among  the  nation- 
alities. Very  few  American-born  men  are  found  in  the 
holds.  They  have  been  promoted  to  hoisting.  The 
supply  is  kept  up  by  immigration.  The  Croatians  are 
large  and  powerful  mountaineers  with  magnificent  arms 
and  legs,  who  rejoice  in  the  heavy  work.  At  the  other 
extreme  are  the  Poles,  a  smaller  and  weaker  race.  The 
Germans  are  heavy  workers,  but  they  lack  endurance,  a 
weakness  ascribed  by  the  Irish  to  their  diet.  The  Irish, 
being  more  Americanized  than  others,  do  not  work  as 
hard  as  they  did.  Yet  all  get  the  same  pay  on  the  same 
boat,  sharing  equally  the  tonnage  receipts.  The  only 
criterion  is  willingness.  The  gang  leaves  to  the  older 
men  the  lighter  work,  such  as  signalling  to  the  hoister; 
and  the  younger  men  do  the  heaviest  work,  such  as 


276  LABOR  AND  ADMINISTRATION 

running  up  the  pile  of  ore  and  heaving  and  pulling  the 
heavy  buckets  in  place.  It  is  an  interesting  fact  that, 
in  all  instances,  this  sytem  of  gang  piece-work  which,  in 
the  clothing,  machinery  and  other  trades,  has  developed 
into  a  sweating  system,  and  is  therefore  vigorously  op- 
posed, is  looked  upon  by  the  'longshoremen  with  the 
greatest  favor.  Instead  of  stirring  up  jealousy  and 
factions,  it  joins  the  union  together  in  feelings  of  friend- 
ship and  mutual  aid,  and  is  being  extended  wherever  the 
union  can  do  so.  Doubtless  the  secret  of  its  success 
lies  in  the  fact  that  the  gangs  do  not  compete  with  each 
other  in  making  the  contract  prices  whenever  a  boat 
comes  to  dock,  but  all  are  subject  to  the  same  uniform 
scale  of  prices  made  annually  in  advance  by  agreement.1 

The  coal  handlers  also  are  paid  by  the  ton.  The  work 
is  mainly  trimming  the  cargo  in  the  hold  of  the  vessel 
after  the  railroad  car  has  been  dumped  on  board  by  the 
hoister.  The  superintendent  appoints  the  gang  boss. 
Since  each  gang  of  sixteen  or  twenty  men  is  hired  for  the 
season  for  a  single  dock,  the  earnings  as  between  the 
gangs  cannot  be  equalized.  On  one  of  the  docks  in 
Cleveland  in  one  year  the  men  earned  $1200,  while 
on  another  only  $600  were  earned.  However,  as 
between  members  of  the  same  gang,  earnings  are  equal. 
An  automatic  trimmer  has  recently  been  introduced, 
displacing  the  gang,  and  operated  with  the  aid  of  a  few 
'longshoremen  at  33  cents  an  hour  when  actually  at 
work.  This  has  materially  reduced  their  earnings. 

Grain  scoopers  at  Buffalo  are  paid  by  the  thousand 

1  Ore  shovelling  and  trimming,  above  described,  are  now  (1913)  lost 
arts,  except  for  a  few  men  at  South  Chicago.  The  boats  are  built  with 
hopper  bottoms,  and  the  clam  shells  do  the  entire  work,  leaving  no  trim- 
ming to  be  done  even  by  hand.  With  this  change  the  union  has  also 
been  eliminated. 


THE   'LONGSHOREMEN  277 

bushels  on  the  gang-sharing  plan,  the  bosses  being 
selected  from  the  union  by  the  superintendent.  At 
Chicago  the  grain  elevator  employees,  with  automatic 
machinery,  are  on  hourly  wages  or  monthly  salaries. 

II 

The  'Longshoremen's  Association  has  entered  into 
agreements  annually  with  several  associations  of  em- 
ployers, especially  the  Lumber  Carriers,  the  Lake  Car- 
riers, the  Dock  Managers,  the  Great  Lakes  Towing  Com- 
pany and  the  Great  Lakes  Tug  and  Dredge  Owners' 
Protective  Association.  The  agreements  with  the  Lum- 
ber Carriers  were  the  first  in  point  of  time.  Local  agree- 
ments had  been  made  at  early  dates  by  local  unions  and 
local  associations  of  dealers  or  carriers,  but  the  unions 
favored  dealing  only  with  individuals.  The  lumber 
carriers  had  formed  associations  at  several  times  since 
1883,  but  those  associations  were  short-lived.  The 
present  Lumber  Carriers'  Association  of  the  Great 
Lakes  has  had  a  continuous  existence  only  since  the  year 
1900.  The  weakness  of  earlier  associations  may  be 
judged  from  the  appeal  made  by  the  executive  com- 
mittee of  one,  organized  in  1898,  to  the  convention  of 
'longshoremen  at  Sheboygan  in  July  of  that  year.1 
The  employers'  committee,  consisting  of  the  president 
and  the  secretary  of  the  association,  in  appearing  before 
the  convention,  represented  that  the  great  interests, 
such  as  the  railroads  and  railroad  steamers,  opposed 
to  the  'longshoremen,  were  also  attempting  "  to  drive 
the  lumber  carriers  to  destruction  by  reducing  the 
carrying  charges  below  a  point  where  they  can  live." 
1  Proceedings,  Seventh  Annual  Convention,  1898,  pp.  19,  20. 


278  LABOR  AND  ADMINISTRATIONj 

The  committee  continued : 

Many  of  you  remember  the  aid  extended  by  your  organization, 
by  one  of  your  local  unions,  in  keeping  the  carrying  rates  at  living 
prices  on  the  Great  Lakes.  This  was  several  years  ago  at  Bay 
City,  which  then  made  the  rates  on  lumber. 

The  committee  then  stated  the  existing  situation  and 
their  proposed  remedy,  as  follows : 

The  ship-owners  or  vesselmen,  having  carried  lumber  at  a  loss 
for  the  past  two  years,  and  witnessing  the  effect  and  success  of 
your  efforts  and  organization,  decided  last  winter  to  follow  your 
example,  —  organize  for  a  living  hire,  and  appeal  to  your  body  so 
closely  identified  with  us  for  aid  and  assistance.  At  a  meeting 
held  in  Detroit  in  February  last  the  vessel-owners  did  succeed  in 
effecting  a  voluntary  association  for  the  purpose  of  mantaining  a 
uniform  minimum  rate  which  should  cover  the  cost  of  transporting 
lumber  and  forest  products.  They  succeeded  in  enlisting  a  large 
majority  of  all  the  vessels  on  the  lakes.  Unfortunately  there  were 
a  few  who  did  not  come  in.  They  threaten  to  disrupt  our  asso- 
ciation, and  we  therefore,  the  Executive  Committee  of  the  Lumber 
Carriers'  Association,  come  before  your  honorable  body,  asking 
and  appealing  for  the  cooperation  which  is  necessary  for  our  exist- 
ence, for  our  success  as  well  as  yours.  This  assistance  which  we 
request  is  that  you  should  either  refuse  to  load  boats  not  belonging 
to  the  association,  or  boats  belonging  to  the  association  that  cut 
rates,  or  impose  a  heavy  fine,  heavy  enough  to  prevent  such 
suicidal  business  or  to  drive  them  all  into  the  association.  This 
we  recommend  be  done  on  the  entire  chain  of  lakes,  or  more 
especially  the  Lake  Superior  districts. 

After  promising  the  'longshoremen  an  increase  in 
wages  if  the  Lumber  Carriers'  Association  could  be  kept 
together  during  the  season,  the  committe  concluded : 

Whatever  action  you  may  take,  it  should  be  taken  as  soon  as 
possible,  for  the  reason  that  members  and  non-members  are  cutting 
the  rates,  and  we  fear  that,  if  some  action  is  not  taken  promptly, 
it  will  become  general  and  the  association  will  go  to  pieces. 


THE   'LONGSHOREMEN  279 

This  appeal  of  the  lumber  carriers  was  not  indorsed  by 
the  convention.  "  The  delegates,"  said  the  secretary 
in  his  report  the  following  year,  "  did  not  wish  to  decide 
the  matter,  because  it  included  the  fining  of  boats  not 
enrolled  in  the  association  and  referred  it  to  the  Locals." 1 
Meanwhile  the  Lumber  Carriers'  Association  disbanded, 
and  was  followed  in  1900  by  the  present  association, 
which  then  made  an  agreement  with  the  union,  and  has 
done  so  each  succeeding  year.  These  agreements,  which 
cover  all  the  loading  and  unloading  ports,  contain  no 
clause  whatever  relating  to  non-association  boats.  It  is, 
indeed,  on  the  side  of  the  'longshoremen,  provided  that 
the  union  shall  furnish  all  the  men  to  unload  the  boats. 
The  employers  are  protected  by  a  clause  which  reads,  — 

Failing  to  supply  such  men  within  twelve  hours,  said  boat  shall 
have  the  right  to  employ  enough  outside  labor  to  unload  said 
boats. 

It  is  also  agreed  that,  if  a  boat  has  been  loaded  by 
non-union  men  the  unloading  local  shall  charge  5  cents 
per  M.  extra. 

This  practice  of  fining  a  boat  which  has  been  loaded 
or  unloaded  by  non-unionists  has  a  bearing  on  the 
relations  of  the  union  to  the  Association  of  Lumber 
Carriers,  as  will  appear  when  the  practice  is  described. 
It  has  been  in  vogue  since  the  beginning  of  the  national 
organization,  and,  indeed,  was  the  strongest  weapon  of 
mutual  protection  which  brought  the  scattered  locals 
together.  The  convention  of  1893  adopted  a  resolution 
providing  for  the  practice,  and  the  constitution  of  the 
international  association  contains  the  following  sections  :2 

1  Proceedings,  Eighth  Annual  Convention,  1899,  p.  19. 

2  Art.  XVI. 


28o  LABOR  AND  ADMINISTRATION 


Penalties 

SECTION  i.  Whenever  any  vessel  or  barge  loads  or  unloads 
with  non-union  men,  then  it  shall  be  the  duty  of  such  Local  where 
the  loading  or  unloading  was  done  to  notify  the  General  Secretary- 
Treasurer  to  enforce  extra  charge  of  ten  cents  per  hour  for  loading 
lumber  and  five  cents  per  thousand  for  unloading  lumber,  two 
cents  per  ton  for  unloading  iron  ore  and  coal,  twenty-five  cents 
per  thousand  bushels  for  elevating  or  trimming  grain,  two  cents 
per  ton  for  trimming  ore  and  coal,  and  for  boats  which  do  not 
trim  two  cents  per  ton  extra  for  unloading.  Provided,  further, 
that  boats  loading  or  unloading  lumber  shall  be  punished  by  en- 
forcing grain,  coal,  or  ore  rates,  and  those  loading  ore,  coal,  or 
grain  shall  be  punished  by  enforcing  lumber  rates,  and  where 
boats,  after  being  fined,  still  refuse  to  employ  union  labor  at  the 
ports  where  loaded  or  unloaded,  the  Locals  in  ports  for  which  said 
boats  are  destined  are  requested  to  double  the  fine  for  each  suc- 
ceeding offence,  and  it  shall  be  the  duty  of  the  Locals  to  notify 
the  General  Secretary-Treasurer  that  the  said  fine  has  been  en- 
forced. 

SECTION  2.  It  shall  be  the  duty  of  the  Local  that  has  received 
such  fine  to  give  the  captain  of  such  vessel  or  barge  a  receipt  for 
the  same,  with  the  seal  of  the  Local  attached. 

SECTION  4.  The  President  and  Corresponding  Secretary  of  all 
Locals  shall  notify,  under  seal  of  their  respective  Local,  the  Secre- 
tary-Treasurer of  any  boats  that  have  violated  the  constitution  of 
our  association,  and  in  case  of  error  or  misunderstanding  the  Local 
that  orders  the  fine  imposed  shall  reimburse  the  Local  collecting 
the  fine.  When  the  boats  are  to  be  fined  for  violation,  the  order 
must  be  sent  through  the  General  Secretary-Treasurer  to  enforce 
the  fine. 

When  a  fine  has  been  wrongfully  imposed,  the  matter 
is  brought  by  the  secretary  of  the  Lumber  Carriers  to 
the  general  secretary-treasurer  of  the  'longshoremen, 
and  he  refunds  the  amount  and  collects  it  from  the 
offending  local. 

Since   this  practice  of  fining  boats  has   long  been 


THE   'LONGSHOREMEN  281 

recognized  and  enforced  as  a  penalty  for  hiring  non-union 
'longshoremen,  it  naturally  also  might  be  enforced  as  a 
penalty  for  refusing  to  join  the  Lumber  Carriers'  Associa- 
tion, as  requested  by  that  association  in  1898.  This  has 
been  done  by  some  of  the  locals,  though  others  charge 
the  non-association  boats  the  same  prices  as  the  asso- 
ciation boats.  The  union  refuses  to  make  agreements 
with  individual  vessel-owners.  Thus  it  has  reversed 
the  policy  of  earlier  days,  when  the  locals,  in  order  to 
prevent  the  employers  from  organizing,  preferred  to 
deal  only  with  individuals.  By  dealing  with  an  associa- 
tion the  competitive  conditions  are  equalized  at  loading 
and  unloading  ports,  and  the  Carriers'  Association 
becomes  responsible  for  violations  by  individual  owners. 
The  non-association  owner,  having  no  agreement,  may 
be  charged  any  price  that  the  local  wishes  and  can 
enforce.  If  he  protests,  the  answer  is  that  he  can  get 
the  association  price  by  joining  the  association.  This 
opportunity  to  make  extra  earnings  is  enough  of  an 
inducement  to  the  locals  to  lead  them  to  put  a  higher 
price  on  non-association  boats,  without  any  request  to 
do  so  from  the  association  or  its  representatives.  Such  a 
request  the  present  association  has  not  made.  It,  of 
course,  would  consider  its  agreements  violated  if  the 
union  charged  a  non-association  boat  less  than  an  asso- 
ciation boat,  and  would  have  its  remedy  by  an  appeal 
to  the  international  officers. 

In  addition  to  fines  the  local  unions  give  priority  in 
loading  and  unloading  their  boats  to  members  of  the 
association  over  non-members.  Such  preference  is  pro- 
hibited as  between  members,  the  Buffalo  agreement  pro- 
viding that  "  boats  shall  be  unloaded  strictly  according 
to  priority  of  arrival  at  this  port."  Not  protected  by 


282  LABOR  AND  ADMINISTRATION 

such  a  clause,  the  non-association  boat  in  a  busy  season 
is  at  a  disadvantage.  In  the  agreement  it  is  stipulated 
that  a  verified  list  of  the  members  of  the  Lumber  Car- 
riers' Association  in  good  standing,  and  the  name  of  the 
vessel  annexed,  shall  be  sent  by  its  secretary  to  each  of 
the  local  unions  on  the  chain  of  lakes,  and  each  vessel 
carries  a  certificate  showing  that  it  is  properly  enrolled 
and  in  good  standing. 

Owing  largely  to  this  support  by  the  union,  the  present 
Lumber  Carriers'  Association  has  been  able  to  hold  its 
members  and  to  enforce  its  scale  of  freight  rates.  It 
includes  85  per  cent  of  the  lumber-carrying  tonnage  on 
the  Lakes,  the  outside  vessels  being  the  older  and 
smaller  boats,  doing  but  little  of  the  business.  The 
association  is  controlled  by  lumber  dealers,  who  are  also 
vessel-owners,  though  a  number  of  them  are  solely 
carriers.  By  resolution  adopted  in  1903  the  owners 
agree  not  to  charter  their  boats  through  agents  who  do 
not  belong  to  the  association,  and  shippers  agree  not  to 
allow  charters  to  be  made  of  any  vessel  whose  owners 
are  not  members  in  good  standing. 

The  association  adopts  a  scale  of  freight  rates  to  and 
from  each  port  on  the  Lakes.  These  rates  have  been 
materially  reduced  in  the  past  two  years,  notwithstand- 
ing the  great  increase  in  wages,  the  firemen  and  seamen 
having  secured  advances  from  $15  to  $25  a  month  for 
deck  hands,  and  the  wheelsmen  from  $20  or  $25  to  $45. 
The  recent  advances  in  'longshoremen's  wages  are  not  as 
great  proportionally,  since  they  have  been  organized 
much  longer.  Railroad  competition  has  become  a  seri- 
ous matter  on  account  of  better  facilities  and  lower 
wages.  The  railroad  car  goes  direct  from  the  shipping 
yard  into  the  receiving  yard.  The  yard  hands  are  paid 


THE   'LONGSHOREMEN  283 

17  cents  to  20  cents  an  hour,  while  the  vessel-owner 
must  pay  50  cents  an  hour  to  the  loader  and  a  piece-rate 
for  unloading,  at  which  the  'longshoreman  earns  60  cents 
or  more  per  hour.  In  spite  of  their  association  the  vessel- 
owners  claim  that  the  union  "  gets  all  the  juice  out  of 
the  orange."  The  members  of  the  union  on  their  side 
realize  that  the  lumber  supply  is  falling  off,  and  they 
are  satisfied  that  top  wages  have  been  reached. 

The  Lake  Carriers'  Association  includes  the  leading 
owners  of  the  ore,  coal  and  grain  carrying  vessels,  the 
largest  one  being  the  Pittsburg  Steamship  Company, 
a  branch  of  the  United  States  Steel  Corporation.  This 
association  was  inaugurated  thirty  years  ago  to  oppose 
burdensome  legislation  at  Washington,  and  has  been 
the  most  important  agency  in  securing  aids  to  naviga- 
tion on  the  Lakes.  Some  fifteen  years  ago  it  broke  up 
the  sailors'  union,  and  for  a  number  of  years  was  not  con- 
fronted by  any  union  of  employees.  Since  1900,  how- 
ever, it  has  made  agreements  with  two  branches  of 
'longshoremen,  the  grain  scoopers  at  Buffalo  and  the 
firemen  on  the  boats ;  also  with  the  lake  seamen  and  its 
affiliated  union  of  marine  cooks  and  stewards ;  and, 
finally,  with  the  Marine  Engineers'  Beneficial  Associa- 
tion. In  this  way  all  of  its  employees  have  been  organ- 
ized. Even  the  remarkable  spectacle  was  seen  in  1904 
of  the  captains  and  mates  following  the  example  of  their 
crews,  and  organizing  a  Masters'  and  Pilots'  Association 
which  ordered  a  strike  and  tied  up  the  shipping  on  the 
Lakes  for  nearly  two  months.  The  Lake  Carriers  at 
first  tried  to  reach  an  understanding  with  this  associa- 
tion, but  felt  compelled  to  resist  the  essential  feature 
of  an  agreement,  namely,  that  the  owners  should  not 
deal  individually  with  their  own  captains.  These,  they 


284  LABOR  AND  ADMINISTRATION 

insisted,  are  the  executive  personal  representatives  and 
vice-principals  of  the  owners.  On  this  ground  they 
drew  a  distinction  between  a  union  of  captains  and  a 
union  of  the  crews.  The  latter  are  not  hired  and 
discharged  by  the  owners,  but  by  the  owner's  represent- 
ative, the  captain  or  mate.  The  masters  and  pilots 
were  defeated  in  their  strike;  and  many  of  them,  as 
a  condition  of  re-employment,  signed  contracts  not  again 
to  join  a  marine  labor  organization.  Commenting  on 
this  defeat,  the  president  of  the  'longshoremen's  union, 
in  his  address  at  the  convention  of  1905,  said : 1 

Had  there  been  a  federation  of  all  the  maritime  organizations, 
working  in  harmony  and  union,  the  humiliating  ending  of  the 
masters'  and  pilots'  strike  could  not  have  happened.  We  had  it 
in  our  power  to  win  the  battle  for  the  masters  and  pilots,  if  given 
an  opportunity  to  do  so,  but  were  not  permitted  by  their  officials, 
who  were  carried  away  by  their  own  importance,  believing  that 
they  were  equal  to  the  situation  without  the  cooperation  and 
assistance  of  any  other  organization,  and  that  it  would  cast  a 
reflection  on  them  as  professional  men  if  they  were  to  be  identified 
with  a  common,  every-day  lot  of  workers  like  the  I.  L.  M.  and 
T.  A. 

Taking  advantage  of  the  defeat  of  the  captains  and 
mates,  the  'longshoremen  have  proceeded  to  organize 
the  pilots  (that  is,  the  mates),  and  to  bring  them  in  as 
another  branch  of  their  association.  At  the  convention 
of  1905  these  new  pilots'  local  unions  were  represented 
by  four  delegates ;  and,  while  it  is  understood  that  under 
no  circumstances  would  the  Lake  Carriers  concede  the 
organization  of  the  masters,  yet  they  seem  to  have  con- 
ceded to  the  'longshoremen  the  organization  of  the 
mates  and  pilots.2 

1  Proceedings,  Fourteenth  Annual  Convention,  1905,  pp.  36,  37. 

2  The  Lake  Carriers  have  practically  eliminated  all  unions  (1913). 


THE   'LONGSHOREMEN  285 

The  outcome  of  the  masters'  and  pilots'  organization 
is  significant  by  way  of  contrast  with  that  of  a  similar 
organization  on  the  tug-boats.  The  Licensed  Tug-men's 
Protective  Association,  organized  in  1900,  is  composed 
of  captains,  mates  and  engineers.  In  1902  this  organ- 
ization was  involved  in  a  contest  with  the  Great  Lakes 
Towing  Company,  known  as  "  the  trust,"  a  member  of 
the  Lake  Carriers'  Association,  and  operating  90  tug- 
boats. After  the  strike  had  been  in  progress  two 
months,  the  association  asked  for  affiliation  with  the 
'longshoremen;  and  charters  where  thereupon  granted 
to  each  of  the  twenty-eight  locals  on  condition  that 
the  'longshoremen  should  not  be  asked  to  enter  on  a 
sympathetic  strike.  Conferences  were  arranged  with 
the  company  through  the  good  offices  of  the  'longshore- 
men and  the  Lake  Carriers'  Association,  by  which,  in 
1903,  the  Licensed  Tug-men's  Association  secured  the 
exclusive  employment  of  its  members  and  a  scale  of 
wages.  Meanwhile  the  tug  firemen  and  line-men  had 
been  organized  by  the  'longshoremen ;  and  an  agreement 
was  also  secured  for  them  with  the  same  company. 
These  agreements  were  renewed  in  1904  and  1905. 
Consequently,  the  'longshoremen's  union,  through  these 
two  branches,  controls  the  captains  and  all  members  of 
the  crews  operating  nearly  all  of  the  tug-boats  on  the 
Lakes. 

The  Association  of  Dock  Managers  at  Lake  Erie 
ports  represents  the  employers  of  much  the  largest  pro- 
portion of  'longshoremen.  They  are  the  great  railroad 
companies  or  their  lessees,  operating  the  docks  for  un- 
loading iron  ore  and  loading  coal,  including  the  United 
States  Steel  Corporation  at  Conneaut,  M.  A.  Hanna  & 
Co.  at  Cleveland  and  Ashtabula,  and  others.  The 


286  LABOR  AND  ADMINISTRATION 

association  has  been  in  existence  since  1874,  for  the 
purpose  of  establishing  uniform  scales  of  charges  for 
loading  and  unloading  boats.  When  the  ore  shovellers 
and  coal  handlers  were  organized  by  the  'longshoremen 
in  1898,  they  secured  agreements  with  individual  man- 
agers; but,  finally,  in  1900  the  Dock  Managers'  Asso- 
ciation took  up  the  problem  of  regulating  wages  as  well 
as  charges.  At  that  time  the  'longshoremen  had 
organized  all  ports,  except  Toledo  and  Sandusky;  the 
dock  managers  entered  into  an  agreement  providing  for 
the  exclusive  employment  of  union  men  at  these  as  well 
as  other  ports ;  and  the  union  agreed  to  admit  to  mem- 
bership all  of  the  local  men.  In  this  agreement  the 
'longshoremen  extended  their  jurisdiction  to  cover  also 
the  highly  skilled  hoisters  and  engineers,  as  well  as  the 
wholly  unskilled  dock  laborers  and  all  employees  on  the 
docks. 

In  contrast  with  the  lumber  carriers,  the  dock  man- 
agers do  not  depend  upon  the  union  to  maintain  their 
organization.  They  had  regulated  charges  for  twenty- 
five  years  before  the  unions  were  strong  enough  to  share 
with  them.  It  is  an  interesting  fact  that  the  prices 
charged  to  vessel-owners  for  unloading  iron  ore  are  2  or 
3  cents  a  ton  lower  in  1905  than  they  were  in  earlier  years, 
while  the  tonnage  rates  paid  to  'longshoremen  are  4  to 
6  cents  higher.  Prior  to  1899  the  shovellers  at  Cleve- 
land received  8  to  10  cents  per  ton,  the  rate  standing  at 
9  cents  in  1898.  The  first  effect  of  the  union  is  seen  in 
the  fluctuating  piece-wages  of  10  to  12^  cents  in  1899; 
and  the  final  effect  is  seen  in  the  uniform  rate  of  14  cents 
in  1900,  reduced  to  13  cents  in  1901  and  1904,  but 
restored  to  14  cents  in  1903  and  1905.  The  rate  charged 
to  the  vessel-owner  by  the  dock  managers  is  19  cents  a 


THE   'LONGSHOREMEN  287 

ton,  leaving  a  margin  of  only  5  cents  to  the  dock  manager 
against  a  margin  of  10  or  12  cents  in  earlier  years.  This 
margin,  it  should  be  said,  is  no  longer  decisive ;  for  it 
applies  only  to  the  old  style  of  hoisting  bucket  paid  for 
at  tonnage  rates,  —  a  style  which,  as  already  shown,  has 
been  largely  displaced,  and  will  soon  disappear  under  the 
competition  of  the  great  automatic  buckets  operated  at 
day- wage  rates.  These  revolutionizing  improvements 
have  been  introduced  during  the  period  since  the  union 
began  to  secure  advances  in  wages,  so  that,  notwith- 
standing those  advances,  the  cost  of  handling  ore  has  been 
reduced.  Further,  as  already  stated,  the  advance  in 
earnings,  except  for  hoisters  and  engineers,  has  not  been 
nearly  so  great  on  the  new  machinery  coming  into  use 
as  on  the  old  machinery  going  out  of  use.1 

Ill 

Enough  has  been  said  to  show  that  the  'longshoremen's 
association  has  grown  up  and  extended  its  organization 
without  any  preconceived  plan.  This  will  be  seen  further 
in  noticing  the  variety  of  relations  existing  between 
"  locals  "  and  "  branches  "  and  the  international  organ- 
ization. The  locals  are  usually  very  small  in  the  num- 
ber of  members,  since  they  are  organized  on  craft  lines ; 
and  there  are  some  forty  crafts  or  occupations  within 
the  organization.  Seven  of  the  crafts  are  spoken  of  as 
"  branches."2  The  branch  in  some  cases  is  admitted 
as  a  local,  and  in  other  cases  it  is  an  association  of  locals. 
Only  locals  as  such  are  represented  in  the  'Longshore- 
men's Convention.  Thus  the  International  Brother- 

1  The  new  machinery  is  deunionized  (1913).     See  note,  p.  276. 

2  Five  in  1913. 


288  LABOR  AND  ADMINISTRATION 

hood  of  Steam  Shovel  and  Dredgemen  is  an  organiza- 
tion which  has  been  in  existence  several  years,  with 
headquarters  at  Chicago,  with  its  general  president  and 
other  general  officers,  its  board  of  directors  and  its 
general  executive  board,  with  its  twenty  local  "  lodges  " 
widely  scattered  (including  one  at  Panama)  and  with  its 
own  official  journal,  Steam  Shovel  and  Dredge.  Yet  this 
organization  is  known  simply  as  "  Local  460  "  of  the 
I.  L.  M.  and  T.  A.,  with  two  votes  in  the  last  conventions. 
The  same  is  true  of  the  International  Brotherhood  of 
Steam  Shovel,  Dredge  Firemen,  Deck  Hands,  Oilers, 
Watchmen  and  Scowmen  of  America,  known  as 
"  Local  470."  1  Likewise  the  Marine  Firemen,  Oilers 
and  Water  Tenders'  Benevolent  Association,  with 
branch  offices  at  seven  ports  on  the  Great  Lakes  and 
headquarters  at  Buffalo,  is  known  as  "  Local  124," 
with  six  votes  in  the  'Longshoremen's  Convention.2 

On  the  other  hand  the  Licensed  Tug-men's  Protective 
Association3  is  composed  of  twenty-eight  locals,  with 
separate  charters  from  the  'Longshoremen's  Associa- 
tion entitling  each  local  to  at  least  one  vote  in  the  con- 
vention, and  an  additional  number  if  its  membership 
exceeds  one  hundred.  The  Tug  Firemen  and  Linemen 
have  a  representative  for  each  of  thirteen  separate 
locals,  and  the  Fishermen  for  twenty-two  locals.  Each 
has  its  "  branch  "  organization  with  general  officers, 
like  the  dredgemen. 

These  branches  hold  their  own  annual  conventions, 
and  conduct  their  business  entirely  separate  from  the 
'Longshoremen's  Convention.  They  select  their  con- 
ference committees  to  meet  the  employers  and  to  make 

1  Now  the  International  Dredge  Workers'  Association. 

2  Deserted  to  the  Seamen  (1913).  3  Eliminated  (1913). 


THE   'LONGSHOREMEN  289 

agreements.  It  would  seem  on  paper  that  they  are 
important  wheels  in  the  'longshoremen's  union.  As  a 
matter  of  fact,  however,  their  powers  are  no  greater 
than  those  of  any  local  union  of  ore  handlers  or  grain 
scoopers.  This  is  on  account  of  the  position  that  has 
gradually  been  conceded  to  the  executive  council  of  the 
international  association,  consisting  of  the  president, 
secretary-treasurer  and  nine  vice-presidents  elected 
at  the  annual  convention  (biennial  after  1905).  All 
locals 

have  full  power  to  regulate  their  own  wages,  whether  by  the  hour, 
by  the  thousand  or  by  the  ton ;  but  the  association  recommends 
that  the  locals  whose  interests  are  identical  in  the  same  locality 
establish  a  monthly  correspondence,  so  that  a  more  uniform  scale 
of  wages  may  be  established.1 

In  this  effort  to  secure  uniformity  the  locals  with 
identical  interests,  whether  they  are  recognized  as 
branches  or  not,  send  their  delegates  to  the  conferences 
with  the  associated  employers.  Such  a  delegate  is  not 
recognized  unless  he  comes  with  credentials  showing 
that  he  has  full  power  to  bind  his  local  to  whatever 
agreement  is  entered  upon.  The  agreement  takes 
precedence  over  all  constitutions  and  by-laws,  whether 
of  locals,  branches  or  the  international  organization. 
It  cannot  be  reviewed  by  referendum  or  by  convention. 
In  fact,  as  viewed  by  their  employers, "  the  only  capital  the 
union  has  is  their  reputation  of  fulfilling  their  contracts." 
They  are  in  the  peculiar  position  of  making  a  contract 
to  furnish  all  of  the  labor  necessary  to  do  certain  work 
at  certain  wages  or  piece-prices,  yet  without  subjecting 
themselves  to  a  penalty  for  failure.  Naturally,  the 
employers  look  to  the  international  officers  to  see  that 

1  Constitution,  Art.  VI,  Sec.  4. 
U 


29o  LABOR  AND  ADMINISTRATION 

the  locals  furnish  the  men.  They,  indeed,  always  re- 
serve "  the  right  to  secure  any  other  men  who  can  per- 
form the  work  in  a  satisfactory  manner  until  such  time 
as  members  of  the  I.  L.  M.  and  T.  A.  can  be  secured."  1 
This  reservation  applies  to  two  classes  .of  cases,  — 
inability  of  the  local  union  to  furnish  men  and  a  strike 
of  the  local  union.  Where  the  local  cannot  furnish 
men,  it  is  the  duty  of  its  president  or  manager  to  notify 
the  captain  within  twelve  working  hours  of  the  time 
when  the  boat  is  placed  at  the  dock.2  The  captain 
then  employs  outsiders  if  he  can  find  them,  but  hoists 
a  flag  to  indicate  that  a  non-union  man  is  at  work.  As 
soon  as  a  member  of  the  union  appears,  the  non-unionist 
is  laid  off,  the  union  man  is  employed  and  the  flag  is 
lowered. 

The  other  case  —  a  strike  or  refusal  by  a  local  to  work 
on  a  vessel,  —  is  considered  a  violation  of  the  contract, 
and  the  vessel  may  be  sent  to  another  dock  or  port  to  be 
unloaded  according  to  the  agreement,  and  the  men  who 
refuse  to  work  are  discharged.3  Resort  to  this  clause 
has  seldom  been  necessary,  because  the  international 
officers  have  promptly  furnished  men,  even  going  so  far 
as  to  furnish  men  outside  of  their  own  organization  to 
take  the  places  of  the  strikers.  The  constitution  of  the 
international  organization  also  provides  for  such  con- 
tingencies,  by  giving  adequate  powers  of  control  over  the 
local  unions.  Locals  are  forbidden  to  take  part  in  any 
sympathetic  strike  or  any  other  strike,  or  to  assist  another 
local,  without  the  consent  of  the  executive  council.4 

1  Dock  Managers'  Agreement,  1905,  Sec.  3. 

2  Lumber  Carriers'  Agreement,  Sees,  i  and  2. 

3  Dock  Managers'  Agreement,  1905,  Sec.  12. 

4  Constitution,  Art.  XIII,  Sees.  3,  4,  8. 


THE   'LONGSHOREMEN  291 

The  council  has  the  power  to  fine  a  local  $10  for  the  first 
offence,  $25  for  the  second  offence  and  to  expel  the  local 
for  the  third  .offence.1  With  these  powers  the  executive 
council,  through  the  international  president,  has  en- 
forced all  of  the  agreements  so  promptly  and  effectually 
that  the  employers,  without  exception,  have  only  the 
strongest  words  of  commendation  for  the  record  of  the 
union  in  this  respect. 

Practically  all  of  the  very  few  strikes  that  have 
occurred  in  recent  years  have  been  those  of  new  organiza- 
tions not  yet  admitted  to  membership  in  the  'Longshore- 
men's Association.  Indeed,  the  growth  of  the  associa- 
tion, especially  in  the  way  of  organizations  other  than 
'longshoremen  proper,  has  followed  upon  the  defeat,  or 
the  prospect  of  defeat,  of  those  organizations  in  strikes  of 
their  own  initiation.  This  has  already  been  shown  in  the 
case  of  the  pilots.  The  same  was  true  of  the  tug-men, 
whose  strike  in  1902  was  lost,  but  who  secured  their 
agreement  through  joining  the  'longshoremen's  union. 
Without  mentioning  other  instances,  it  is  evident  that 
the  'longshoremen  show  a  reversal  of  the  usual  course 
of  unionizing,  in  that  with  them  the  skilled  and  salaried 
employees  have  not  led  in  organization,  but  have  fol- 
lowed and  relied  upon  the  disrespected  "  dock-wolloper." 
It  was  the  lumber  handler,  the  ore  shoveller,  the  coal 
handler,  who  led  the  way,  and  afterwards  took  in  and 
gained  for  many  skilled  occupations  favorable  conditions 
and  union  recognition  which  they  were  unable  to  gain 
for  themselves.  In  no  case  has  this  been  done  through 
a  sympathetic  strike  or  a  violation  of  any  agreement. 
The  newly  admitted  organization  has  usually  been  re- 
quired to  wait  until  the  existing  agreements  expired,  and 
1  Ibid.,  Art.  XVII,  Sec.  i. 


292  LABOR  AND  ADMINISTRATION 

then,  in  the  conferences  with  employers  on  a  renewal  of 
agreements,  it  has  been  cared  for  the  same  as  the  others. 

Naturally,  with  so  many  occupations  and  races  there 
arises  dissatisfaction  with  some  of  the  agreements.  But 
the  members  of  the  various  branches  have  seen  a  few 
vivid  lessons  of  the  penalties  inflicted  when  a  branch  or 
a  local  attempts  to  act  alone.  This  was  spectacularly 
true  of  the  strike  called  by  Local  124  in  April,  1903, 
when  that  local  was  dissatisfied  with  an  agreement  just 
about  to  be  made.  Local  124  is  known  as  the  Marine 
Firemen,  Oilers  and  Water-tenders,1  employed  on  all 
the  lake  steamers,  and  had  been  a  "  branch  "  of  the 
'Longshoremen's  Association  for  four  years.  Its  offi- 
cers, unable  to  carry  their  point,  brought  on  the  strike 
without  the  knowledge  of  the  executive  council.  The 
latter  declined  to  permit  a  sympathetic  strike  of  other 
locals,  although  the  work  of  all  of  their  members  was 
interrupted.  The  lake  carriers  filled  the  places  of  the 
firemen,  and  the  other  'longshoremen  continued  to  work 
with  the  non-unionists.  After  being  defeated  in  a  two 
months'  strike,  the  firemen  offered  arbitration,  which 
the  lake  carriers  refused,  but  finally,  through  the  rep- 
resentations of  the  'longshoremen's  officers,  they  made 
an  agreement,  and  the  firemen  were  granted  the  terms 
which  two  months  before  they  had  refused  to  accept. 
This  salutary  lesson,  administered  to  a  well-organized 
branch,  whose  members  visit  every  port  on  the  Lakes, 
has  greatly  strengthened  the  hold  of  the  international 
officers  on  all  the  locals.  The  lesson  is  all  the  more 
impressive,  for  it  has  been  accompanied  in  this  case  by 
an  increase  in  wages  from  $25  or  $30  a  month  to  $45  to 
October  i,  and  $65  from  that  date  to  the  close  of  navi- 

1  Deserted  to  the  Seamen,  then  eliminated  (1913). 


THE   'LONGSHOREMEN  293 

gation.  There  has  also  been  a  lessening  in  the  amount  of 
work  by  increasing  the  number  of  men,  so  that  one  man 
fires  four  doors  where  he  formerly  fired  six. 

It  is  significant  that  this  strong  position  of  the  inter- 
national has  been  accomplished  without  the  backing  of 
a  treasury.  Other  national  and  international  unions 
have  built  up  strike  or  "  defence  "  funds,  held  by  the 
general  treasurer  and  available  only  for  those  local 
unions  whose  strikes  have  been  sanctioned  by  the  in- 
ternational officers.  These  funds  are  accumulated 
through  a  per  capita  tax  on  all  members  of  local  unions. 
But  the  per  capita  tax  of  the  'longshoremen  is  only  5 
cents,  as  against  15,  25,  and  40  cents  a  month  in.  other 
organizations.  This  barely  meets  the  expenses  of  the 
central  organization.  The  executive  council  may, 
indeed,  levy  assessments  on  local  unions ;  but  this  has 
never  been  done.  On  the  other  hand,  the  dues  of  the 
local  unions  are  50  cents  a  month,  enabling  them,  after 
paying  the  per  capita  tax,  to  accumulate  a  good-sized 
treasury  which  may  be  used  as  they  see  fit,  for  strikes 
or  for  insurance  benefits. 

This  extreme  local  autonomy  in  the  constitution  of  the 
union,  accompanied  by  unusual  discipline  and  centraliza- 
tion in  all  dealings  with  employers,  suggests  the  question 
whether,  perhaps,  this  union  is  merely  a  "  one-man  " 
organization,  depending  for  its  unusual  success  on  the  per- 
sonality of  the  able  executive  officers  who  happen  to  have 
been  in  charge  during  the  period  of  its  growth.  Neither 
the  organization  nor  its  leaders  are  as  yet  old  enough  to 
answer  this  question.1 

It  will  have  been  noted  that  all  of  the  agreements  of 

1  The  history  of  the  organization  since  1906  shows  that  this  surmise 
was  correct.  The  membership  fell  to  13,700  in  1909  and  has  risen  to 


294  LABOR  AND  ADMINISTRATION 

the  'longshoremen  are  strictly  "closed-shop"  agreements, 
stipulating  the  employment  exclusively  of  union  mem- 
bers. This  is  true  not  only  of  the  dock  workers,  whose 
agreements  are  something  more  than  scales  of  wages,  — 
contracts  to  load  or  unload  cargoes,  and  therefore  neces- 
sarily exclusive ;  it  is  true  also  of  all  the  crafts  and  occu- 
pations. The  first  agreement  of  the  association,  made 
in  1893  f°r  the  port  of  Chicago  only,  was  silent  on  mem- 
bership in  the  union;  but  in  1894  the  union  accepted  a 
reduction  of  20  per  cent  in  wages,  but  extended  the 
agreement  to  all  ports  on  Lake  Michigan  and  Lake 
Huron,  and  secured  the  exclusive  employment  of  union 
men.  Similar  strategy  has  been  shown  at  other  times,  as 
when  in  1901,  after  substantial  advances  during  the  pre- 
ceding years,  a  horizontal  reduction  in  wages  of  7^  per 
cent  was  agreed  upon  with  the  Dock  Managers,  and 
continued  for  1902,  accompanied,  however,  by  a  reduc- 
tion of  working  hours  to  9  or  10  per  day  in  some  cases, 
and  ii  per  day  in  handling  iron  ore  and  coal.  This 
reduction  in  hours  has  been  maintained,  but  wages  were 
advanced  8  per  cent  in  1903.  They  were  reduced  again 
7 1  per  cent  in  1904,  with  various  compensations  in  the 
conditions  and  hours  of  work,  and  restored  in  1905  with 
the  compensations  retained.  This  adaptation  of  wages 
to  industrial  conditions  indicates  an  unusual  degree  of 
discipline  in  the  union  and  a  willingness  to  avoid  strikes ; 
and  this,  naturally,  wins  the  employers  to  the  closed- 
shop  agreements. 

On  the  side  of  the  dock  laborers  and  'longshoremen 
proper,  the   closed-shop  agreements   are   looked   upon 

38,000  in  1913,  although  the  increases  are  at  the  ocean  ports  instead  of 
those  on  the  Great  Lakes.  The  former  president  of  the  organization 
became  Commissioner-general  of  Immigration. 


THE   'LONGSHOREMEN  295 

mainly  as  a  protection  against  immigrants.  The  higher 
grades  of  skilled  employees,  such  as  hoisters  and  engi- 
neers, are  filled,  according  to  the  agreements,  by  promo- 
tion from  employees  on  the  docks  where  the  promotions 
are  made.  These  promotions  come  almost  solely  to  the 
English-speaking  laborers,  especially  Irish  and  Germans, 
so  that  these  races  are  gradually  rising  from  the  lower 
grades.  But  the  'longshoremen  and  dock  laborers, 
from  whom  these  promotions  are  made,  are  themselves 
recruited  from  foreign  immigrants;  and  the  pressure 
of  immigration  therefore  bears  directly  upon  them. 
Prior  to  the  organization  of  the  unions  there  was  a  rapid 
influx  of  these  laborers.  The  boss  or  a  friend  would 
bring  up  a  dozen  men  from  a  distance,  and  put  them  to 
work,  while  men  who  had  been  there  for  years  were  dis- 
placed. But  with  the  closed-shop  agreement  these  new- 
comers are  not  admitted  unless  the  amount  of  work  is 
greater  than  the  number  in  the  union  can  supply. 

This  supply  is  regulated  automatically  through  the 
initiation  fees.  These  are  under  the  control  solely  of 
each  local  union.  Beginning  with  fees  of  $5,  the  locals 
have  raised  the  amount  to  $25  or  $50,  and  even  $100, 
according  as  the  pressure  for  admission  increased  beyond 
the  opportunity  for  steady  employment  of  those  already 
admitted.  Again,  when  the  pressure  lightened  or  the 
work  increased,  the  initiation  fee  was  reduced ;  but  the 
majority  of  the  locals  seem  inclined  to  place  it  at  $50. 
Since  the  wages  earned  are  much  higher  than  what  the 
Poles,  Croatians,  Italians,  Roumanians  and  similar 
races  can  earn  outside,  and  since  these  races  are  notedly 
thrifty  even  on  those  lower  wages,  it  has  been  found  that 
$50  is  just  about  the  rate  of  tariff  that  equalizes  supply 
and  demand. 


296  LABOR  AND  ADMINISTRATION 

I  have  not  mentioned  the  spread  of  the  'longshore- 
men's union  to  the  Gulf  and  Atlantic  and  Pacific  coasts. 
The  original  and  characteristic  features  are  found  on  the 
Great  Lakes,  especially  the  control  by  one  organization 
of  both  ends  of  the  vessel's  trip,  so  that  by  their  system 
of  fines  a  weak  union  at  one  end  can  be  promptly  and 
effectually  aided  by  a  strong  local  at  the  other  end.  The 
salt-water  locals  have  looked  forward  to  a  similar 
arrangement  with  the  dock  workers  of  other  lands,  and 
recently  an  affiliation  was  arranged  with  the  Interna- 
tional Transport  Federation,  headquarters,  London. 
Thus  it  is  something  more  than  a  dream  that  the  oceans 
shall  be  governed  like  the  lakes,  and  vessels  loaded  or 
unloaded  by  non-union  men  in  any  port  of  the  world 
shall  be  punished  when  they  touch  a  port  across  the 
ocean  controlled  by  union  men.1 

1  The  dream  did  not  materialize,  but  an  agreement  has  been  made  with 
the  Transatlantic  Steamship  Company  at  Boston,  and  all  of  the  Pacific 
Coast,  except  San  Francisco,  is  organized  under  the  'Longshoremen. 


CHAPTER  XVI 

THE  MUSICIANS  OF  ST.  LOUIS  AND  NEW  YORK  1 

IT  has  been  a  long  struggle  of  the  musicians  to  get 
themselves  looked  upon  as  workers  instead  of  players. 
Even  yet  they  are  not  taken  as  seriously  as  they  wish, 
though  they  have  practised  trade-union  methods  these 
ten  to  twenty  years.  The  contest  was  first  internal ;  for 
they  could  but  painfully  give  up  the  idea  that  they  were 
artists,  and  neither  players  nor  workers.  Even  conceding 
that,  though  artists,  they  worked  hard  for  their  living,  the 
old-fashioned  ones  contended  that  they  were  at  least  a 
profession,  and  not  a  craft.  This  internal  revolution  is 
the  first  stage  in  their  history.  The  second  is  their 
growth  as  a  trade  union  into  a  more  complete  control  of 
their  business  throughout  the  United  States  and  Canada 
than  that  enjoyed  by  any  other  large  union  in  the 
American  Federation  of  Labor. 

The  former  National  League  of  Musicians  represented 
the  artistic  and  professional  element.  It  was  organized 
in  1886  by  delegates  from  musical  societies  in  New  York, 
Boston,  Philadelphia,  Cincinnati  and  Milwaukee.  Ten 
years  thereafter  it  included  101  "  locals."  Some  of  these 
had  been  in  existence  several  years,  the  one  in  New  York 
dating  from  1863.  The  National  League  had  no 
effective  control  over  the  locals,  and  prescribed  no  rules 
binding  upon  them.  Consequently  they  differed  widely 

1  Quarterly  Journal  of  Economics,  May,  1906.  The  figures  have  been 
corrected  for  the  year  1913. 

297 


298  LABOR  AND  ADMINISTRATION 

in  their  policies  and  tactics.  The  older  ones  were 
incorporated  under  State  charters,  and  held  property. 
Each  of  them,  like  the  trade  unions  which  they  shunned, 
set  up  a  scale  of  minimum  prices.  Likewise  they  pro- 
hibited their  members  from  playing  with  non-members. 
But  their  State  charters  made  it  precarious  for  them  to 
expel  a  member  who  cut  the  prices  or  played  with  out- 
siders. They  were,  in  fact,  in  a  position  similar  to  that 
of  an  association  of  physicians  which  adopts  a  schedule 
of  recommended  prices  to  be  charged  by  its  members. 
They  lacked,  however,  that  protection,  through  limita- 
tion of  numbers,  which  comes  to  physicians  and  lawyers 
in  the  legal  certificate  of  competency  based  on  an 
apprenticeship  of  study  and  an  examination. 

The  younger  locals,  especially  those  in  the  West,  were 
less  influenced  by  the  professional  element  whose  centre 
was  in  New  York.  They  were  organized  after  the  ex- 
ample of  the  Knights  of  Labor  or  the  trade  unions  of  the 
American  Federation  of  Labor.  Although  the  National 
League  had  been  invited  year  after  year  by  the  Knights 
and  by  the  Federation  to  become  affiliated,  yet  it  always 
declined.  Had  the  vote  been  taken  by  locals,  the 
invitation  would  have  been  accepted ;  but,  by  a  peculiar 
system  of  proxies  assigned  through  a  committee  after 
the  convention  assembled,  the  vote  of  these  smaller 
locals,  which  could  not  afford  to  send  delegates,  was  cast 
by  the  older  locals,  and  thus  New  York  and  Philadelphia 
were  able  to  control  the  conventions.  Meanwhile,  the 
American  Federation  of  Labor  had  chartered  musicians' 
unions  in  several  localities,  with  the  object  of  forming 
them  eventually  into  a  national  body.  To  prevent  this 
dual  organization,  local  officers  of  the  National  League 
at  St.  Louis,  Cincinnati,  Chicago  and  Indianapolis  joined 


THE  MUSICIANS  299 

with  the  Federation  of  Labor  in  1896  in  calling  a  con- 
vention. The  invitation  was  extended  to  locals  of  the 
League,  as  well  as  those  organized  by  the  Federation. 
The  convention  met  at  Indianapolis,  the  headquarters 
at  that  time  of  the  American  Federation  of  Labor,  and 
included  delegates  from  19  locals  of  the  League  and 
5  other  locals  chartered  by  the  Federation.  The  fact 
that  these  5  locals  contained  members  suspended  from 
the  League,  nearly  disrupted  the  convention,  since  to 
admit  such  was  inconsistent  with  the  object  of  preventing 
a  dual  organization.  But  this  difficulty  was  bridged  by 
a  formal  reply  from  the  Executive  Council  of  the  Federa- 
tion, that  national  bodies  once  affiliated  are  guaranteed 
autonomy  in  regulating  their  membership,  so  that  the 
proposed  association  would  become  the  sole  judge  of 
the  qualifications  of  union  musicians  throughout  the 
country.  With  this  assurance  the  American  Federation 
of  Musicians  was  organized,  with  a  charter  of  affiliation 
from  the  American  Federation  of  Labor.  It  elected  as 
its  president  Owen  Miller,  of  the  St.  Louis  local,  a  former 
president  of  the  National  League  and  still  in  good 
standing. 

The  officers  of  the  League  would  not  be  conciliated. 
At  once  they  expelled  every  local  that  joined  the  new 
association.  But  their  efforts  were  futile.  Within  five 
months  48  of  their  101  locals  went  over,  and  in  1902  only 
3  locals  were  left  in  the  old  organization.  A  decision 
handed  down  from  a  Missouri  court  reinstated  the  expelled 
locals  and  compelled  a  division  of  the  funds.  This  was 
the  final  blow.  The  League  held  its  last  convention 
in  1902.  "  It  started  at  the  top,  ignoring  the  rank  and 
file,  and  finally  came  out  at  the  bottom."  The  New  York 
local,  the  Musicians'  Mutual  Protective  Union,  with 


300  LABOR  AND   ADMINISTRATION 

4000  members,  held  out  for  a  year  longer,  but  was  com- 
pelled to  yield  and  become  "No.  310."  In  1913,  the 
new  organization  has  636  locals  and  64,000  members.  It 
has  brought  in  practically  all  instrumental  musicians  in 
the  United  States  and  Canada,  who  play  for  a  living, 
either  as  leaders  or  as  members  of  orchestras  and  bands, 
including  all  travelling  musicians,  and  excepting  only 
those  who  are  soloists  or  organists  and  those  members  of 
local  companies  who  play  only  their  own  series  of  con- 
certs. How  this  has  come  about  will  appear  from  the 
history  of  the  St.  Louis  local,  which  led  the  movement 
of  organization  on  trade-union  lines,  and  furnished  both 
the  model  constitution  and  by-laws  which  others  have 
copied,  as  well  as  the  national  officer  who  has  guided  the 
Federation. 

A  musicians'  union  is  similar  to  a  stock  exchange  or  a 
produce  exchange,  and  its  headquarters  are  a  "  pit  " 
where  buyers  and  sellers  of  instrumental  music  meet 
to  make  engagements.  The  buyers  are  "  leaders  "  of 
orchestras,  bands  or  concerts:  the  sellers  are  the 
musicians.  The  buyers  are  also  contractors  or  agents, 
who  represent,  for  the  time  being,  the  owners  or  managers 
of  theatres,  concert  halls,  summer  gardens,  restaurants, 
parades,  pageants,  and  so  on.  But,  like  the  broker  on 
the  exchange,  they  must  be  members  of  the  union  if  they 
are  to  have  the  privileges  of  the  floor.  Like  the  broker, 
too,  they  are  prohibited  from  buying  musical  talent  of 
those  who  are  not  members.  Thus  the  musicians' 
union,  like  the  stock  exchange,  is  "  closed  "  on  both  sides, 
-  members  only  can  buy  and  sell,  hence  members  only 
can  be  employers  and  employed.  Every  member  is 
entitled  to  become  a  "  leader,"  if  he  can  find  a  client 
(that  is,  if  he  can  find  a  proprietor  or  manager  who  will 


THE  MUSICIANS  301 

make  a  contract  authorizing  him  to  furnish  musicians). 
Consequently,  like  the  brokers,  a  member  may  be  to-day 
a  buyer,  that  is,  an  employer  of  his  fellow-members, 
making  a  contract  for  their  services,  and  to-morrow  he 
may  be  a  seller,  that  is,  a  wage-earner,  contracting  for 
his  services  with  a  fellow-member.  Thus,  the  lines  are 
not  always  closely  drawn.  Only  a  few  of  the  members 
are  known  solely  as  leaders.  They  are  the  fortunates 
who  have  contracts  with  theatres  and  the  like,  or  who 
make  up  orchestras  designated  and  advertised  under 
their  own  name  as  "  director."  In  the  St.  Louis  union 
of  975  members,  only  about  100  are  employed  steadily 
by  these  directors  in  theatres.  The  others  are  employed 
now  by  one  leader,  now  by  another,  on  short  engagements 
and  for  special  occasions.  Yet  those  who  are  predomi- 
nantly leaders  are  clearly  set  off  from  the  others.  They 
are  a  small  minority,  and  the  policy  of  the  union  is  de- 
termined by  the  majority,  whose  interests  are  those  of 
wage-earners.  This  will  be  seen  at  many  points. 

Formerly,  the  musicians  met  at  saloons  to  make  their 
engagements,  each  clique  or  grade  of  the  local  talent 
having  its  favorite  "  joint,"  whose  proprietor  collected 
his  rent  in  the  "  drinks."  The  first  step  of  the  union 
was  to  rent  its  own  headquarters.  The  next  was  to 
bring  in  all  the  local  musicians.  The  two  worked 
together,  as  will  appear.  In  the  matter  of  headquarters, 
unlike  other  unions,  the  musicians  must  have  a  room 
large  enough  for  their  daily  gatherings.  The  New  York 
union  provides  a  floor  where  a  thousand  or  more  of  its 
members  can  meet  every  day.  The  St.  Louis  local 
accommodates  five  hundred  or  more.  To  secure  such  a 
place  with  offices  adjoining,  the  larger  locals  have  found 
it  necessary  to  buy  or  build  a  house.  To  do  this,  the 


302  LABOR  AND   ADMINISTRATION 

older  ones  took  out  articles  of  incorporation  under  State 
laws,  not  as  unions,  but  as  benefit  associations,  enabling 
them  to  hold  property  not  for  profit.  But  these  articles 
of  incorporation  prevented  them  from  freely  enforcing 
discipline  by  fines,  expulsion  and  boycott.  The  younger 
locals,  of  which  St.  Louis  is  the  type,  avoided  incorpora- 
tion, but  shrewdly  resorted  to  the  device  of  the  stock 
exchange.  The  "  New  York  Stock  Exchange  Building 
Company  "  is  composed  of  the  same  members  as  the 
"  New  York  Stock  Exchange."  But  the  former  is  in- 
corporated, owns  the  building  and  leases  it  to  the  latter, 
which  is  unincorporated.  The  Aschenbroedel  Club  of  St. 
Louis  is  an  incorporated  body,  and  the  unincorporated 
Musicians'  Mutual  Benefit  Association  ("  Local  2,  St. 
Louis,  American  Federation  of  Musicians  ")  has  a  by- 
law, adopted  in  1894 : 

Whereas  the  main  object  for  the  formation  of  the  Aschenbroedel 
Club  was  to  unite  the  professional  musicians  of  St.  Louis  into  a 
social  body,  with  corporate  powers,  with  a  view  of  securing  a  suit- 
able property  for  a  home ;  and 

Whereas,  in  spite  of  all  inducements  offered,  a  large  number  of 
the  professional  musicians  are  still  outside  of  the  organization ;  and 

Whereas,  the  fact  is  that  every  professional  musician  in  the  city 
is  reaping  the  benefit  of  this  organization  (and  with  the  exception 
of  those  that  are  members)  without  assuming  any  of  its  responsi- 
bilities ;  and 

Whereas,  believing  that  every  professional  musician  ought  by 
right  to  be  a  member  of  this  organization,  —  therefore  be  it 

Resolved,  first,  That  in  future  all  who  are  accepted  members  of 
the  Musicians'  Mutual  Benefit  Association  ,shall  also  become  mem- 
bers of  the  Aschenbroedel  Club. 

Second,  That  a  violation  of  the  rules  and  regulations  of  the  As- 
chenbroedel Club  shall  be  considered  a  like  violation  in  the  Musi- 
cians' Mutual  Benefit  Association,  and  punished  accordingly  by 
;the  proper  authorities  ,ol  the  Musicians'  Mutual  J3 enefit  Asspcjatioii, 


THE  MUSICIANS  303 

Third,  That  the  Musicians'  Mutual  Benefit  Association  shall  in 
no  sense  be  held  responsible  for  any  of  the  liabilities  of  the  Aschen- 
broedel  Club.1 

The  St.  Louis  Aschenbroedel  Club  has  one  set  of 
officers  chosen  from  the  older,  conservative  and  com- 
mercial-like men,  and  holds  only  an  annual  meeting. 
The  Benefit  Association,  or  union,  has  younger  and  more 
aggressive  officers,  and  holds  fortnightly  or  special  meet- 
ings. The  Aschenbroedel  Club  collects  no  dues  or  fees, 
but  covers  its  expenses  through  a  lease  of  its  building 
and  equipment  to  the  union.  It  operates  a  bar  and 
buffet,  billiard  tables,  and  so  on.  It  never  expels  or 
disciplines  a  member,  but,  when  one  loses  his  member- 
ship in  the  union  on  account  of  an  infraction  of  union 
discipline,  his  membership  in  the  incorporated  body  is 
worthless. 

This  dual  arrangement  has  allowed  the  union  to  slip 
through  the  meshes  of  the  law  by  means  of  a  frank  and 
unusual  plea.  A  member  was  expelled  by  the  Benefit 
Association,  or  union,  for  violating  a  sympathetic  strike 
order,  forbidding  him  to  ride  on  the  cars  of  the  street 
railway  company  during  a  strike  of  its  employees.  He 
secured  a  permanent  injunction  in  a  lower  court  restrain- 
ing the  officers  from  enforcing  the  order,  on  the  ground 

xThe  term  " Aschenbroedel "  is  not  the  equivalent  of  "Cinderella." 
After  the  death  of  a  beloved  leader  in  New  York,  named  Asche,  a  social 
club  of  musicians,  desiring  to  honor  his  memory,  but  to  avoid  the  epithet 
"ashes,"  added  the  suffix  "broedel,"  signifying  the  rollicking  character 
of  their  club.  The  term  has  spread  to  similar  clubs  throughout  the 
United  States.  The  New  York  club  was  the  original  musicians'  club 
in  America,  organized  in  1860.  Unlike  the  St.  Louis  Aschenbroedel, 
its  membership  is  limited  to  those  who  speak  German,  and  it  includes 
only  about  one-fifth  of  the  members  of  the  union.  It  owns  a  club-house 
valued  at  $250,000.  The  local  union  is  separately  incorporated.  Other 
nationalities  within  the  union  have  their  own  clubs. 


3o4  LABOR  AND   ADMINISTRATION 

that  he  had  a  property  right  in  the  sick  and  mortuary 
benefits  of  the  association,  and  that  the  order  of  expul- 
sion was  not  passed  in  the  manner  provided  for  amend- 
ing its  by-laws.  The  higher  court  reversed  this  judgment 
on  the  plea  set  up  by  the  union  1  that  its  by-laws  and 
regulations  were  contracts  in  restraint  of  trade ;  that  it 
was  a  monopoly,  in  that  a  musician  could  not  find  em- 
ployment without  being  a  member  of  the  association; 
that  the  plaintiff  was  aware  of  its  illegal  character  when 
he  joined,  and  had  indeed  joined  for  the  purpose  of 
profiting  by  such  monopolistic  regulations  which  he  had 
faithfully  observed ;  that  the  benefit  sections  of  the  by- 
laws were  merely  aids  to  enforce  the  restrictive  sections, 
and  could  not  be  separated  from  them;  and  that  for 
the  court  to  sustain  the  injunction  would  be  specifically 
to  enforce  a  contract  with  a  monopoly  or  association 
in  restraint  of  trade.  To  support  this  plea,  the  union 
submitted  its  constitution  and  by-laws  showing  its  scale 
of  minimum  prices,  its  prohibitions,  and  other  compul- 
sory conditions  affecting  membership,  and  the  applica- 
tion for  membership  signed  by  the  plaintiff.  The  court, 
in  rendering  its  decision,  said  : 

In  the  case  at  bar  the  by-laws  impose  on  the  members  of  the 
association  a  most  slavish  observance  of  the  most  stringent  rules 
and  regulations  in  restraint  of  trade.  So  strict  and  far-reaching 
are  they  that  no  musician  in  the  city  of  St.  Louis;  and  for  that 
matter  in  any  city  of  the  country,  can  find  employment  as  a  musi- 
cian unless  he  is  a  member  of  the  association.  Such  a  confedera- 
tion and  combination  is  a  trust,  pure  and  simple.  .  .  .  The 
plaintiff  is  in  the  attitude  of  asking  the  court  to  keep  him  where 
he  says  he  has  no  right  to  be  and  to  retain  him  in  a  position  where 
he  may  aid  in  the  support  and  maintenance  of  an  illegal  association, 

1  St.  Louis  Court  of  Appeals,  1901,  Froelich  v.  Musicians'  Mutual 
Benefit  Association,  et  al.  Brief  of  Appellant,  Frank  R.  Ryan,  attorney. 


THE  MUSICIANS  305 

and  where  he  may  continue  to  support  and  keep  up  a  monopoly 
of  the  services  of  musicians.  Courts  have  never  dealt  with  monop- 
olies except  to  restrain  or  destroy  them,  and  we  decline  to  depart 
from  this  wholesome  rule  in  this  case  and  reverse  the  judgment 
with  directions  to  the  trial  court  to  dissolve  the  injunction  and  to 
dismiss  the  plaintiff's  bill.  Decision  unanimous.  93  Mo.  App. 
383- 

The  legal  mind  is  perhaps  profound  where  it  seems 
comical.  At  any  rate,  the  St.  Louis  local  thus  demon- 
strated that  to  enforce  discipline  it  should  avoid  incor- 
poration. The  secretary  has  impressed  the  lesson  on 
other  locals,  and  has  advised  all  that  hold  State  charters 
to  give  them  up  or  to  use  them  for  conducting  the  social 
and  business  functions  of  the  organization,  leaving  the 
enforcement  of  prices  and  regulations  to  unincorporated 
associations  which  cannot  be  "  haled  into  court  every 
time  they  attempt  to  enforce  the  discipline  of  the  Ameri- 
can Federation  of  Musicians."  1 

Turn  now  to  the  New  York  local.  Its  members, 
operating  under  a  State  charter  granted  by  special  act 
in  1864,  soon  learned  its  limitations.  They  went  again 
to  the  legislature,  and  secured  in  1878  an  amendment  so 
extraordinary  as  scarcely  to  be  explained  on  modern 
lines  of  legislation.2  This  amendment  added  to  the 
other  objects  of  the  union  "  the  establishment  of  a  uni- 
form rate  of  prices  to  be  charged  by  members  of  said 
society,  and  the  enforcement  of  good  faith  and  fair  deal- 
ing between  its  members."  The  amendment  continues : 

It  shall  be  lawful  for  said  society,  from  time  to  time,  to  fix  and 
prescribe  uniform  rates  of  prices  to  be  charged  by  members  of  said 

1  International  Musician,  June,  1904. 

2  Laws  of  1878 :   "An  act  to  amend  chapter  168  of  the  laws  of  1864, 
entitled  'An  act  to  incorporate  the  Musical  Mutual  Protective  Union,' 
passed  April  n,  1864." 

x 


306  LABOR  AND  ADMINISTRATION 

society  for  their  professional  services,  and  for  that  purpose  from 
time  to  time  to  make  and  adopt  such  By-laws  as  it  may  approve. 
And  any  member  of  said  society  violating  any  such  By-law  may  be 
expelled  from  said  society  (after  being  afforded  an  opportunity 
to  be  heard  in  his  defence)  in  such  manner  as  such  society  may, 
from  time  to  time,  prescribe  by  By-laws  which  it  is  hereby  author- 
ized to  make. 

By  this  remarkable  act  of  legislation  the  New  York 
musicians,  twenty-five  years  before  they  joined  the  trade 
unions,  sought  legally  to  practise  trade-union  tactics. 
Yet,  while  the  act  grants  certain  powers  assumed  by 
trade  unions,  it  fails,  of  course,  to  grant  the  most  effective 
weapons  of  unions,  the  power  to  strike  or  boycott  and 
the  power  to  fine  or  expel  a  member  for  working  with  a 
non-member  or  working  for  an  "  unfair "  employer. 
Nevertheless,  the  union  adopts  and  enforces  this  class  of 
by-laws,  as  well  as  by-laws  enforcing  the  minimum  prices. 
But  the  fact  of  incorporation  gives  to  a  fined  or  expelled 
member  a  standing  in  court,  and  this  is  seen  in  the  cau- 
tious use  of  its  discipline  by  the  musicians'  union.  An 
act  of  incorporation  is  strictly  construed  by  the  courts. 
All  powers  not  expressly  granted  by  the  legislature  are 
withheld.  But  an  unincorporated  union  enjoys  all  powers 
not  expressly  prohibited  by  the  courts.  In  States  other 
than  New  York,  this  principle  would  work  against  the 
incorporated  union.  But  in  New  York,  where  the  courts 
have  permitted  large  powers  to  unincorporated  unions, 
they  have  allowed  the  same  powers  to  the  incorporated 
musicians'  union.1  Consequently,  the  union  has  not 
seen  fit  to  abandon  its  charter,  but  rather  has  recently 
gone  to  the  farthest  extreme  of  any  American  union  in 
exposing  itself  to  attack  by  investing  its  funds  in  a  build- 
ing for  headquarters  costing  $250,000. 
^Thomas  v.  Musicians'  Protective  Union,  121  New  York,  46  (1890). 


THE  MUSICIANS  307 

The  St.  Louis  local  worked  out  another  legal  device 
bearing  on  the  "  closed  orchestra."  This  is  the  form  of 
contract  between  managers,  leaders  and  members.  For- 
merly the  leaders  were  in  the  position  of  independent 
employers  without  capital,  who  contracted  with  man- 
agers to  furnish  musicians.  Now  the  leader  is  made 
the  agent  of  the  musicians  whom  he  employs.  He  first 
enters  into  a  contract  with  the  manager  to  furnish 
musicians  as  his  agent,  either  for  the  season  or  for  a 
special  occasion.  The  form  covering  a  special  occasion 
has  a  clause : 

It  is  further  agreed  that  if  there  are  any  bands  or  orchestras 
employed  for  this  engagement  who  are  unfair  to  the  American 
Federation  of  Musicians,  this  contract  shall  be  considered  null  and 
void,  as  far  as  the  party  of  the  first  part  (the  leader)  is  concerned, 
but  does  not  relieve  party  of  the  second  part. 

The  leader  then  makes  contracts  with  individual 
musicians,  "  subject  to  the  rules  and  regulations  of  the 
Musicians'  Mutual  Benefit  Association,  Local  No.  2, 
American  Federation  of  Musicians,  as  prescribed  in  the 
Constitution,  By-laws,  and  Price-list."  These  contracts 
are  signed  in  duplicate,  and  a  copy  is  filed  with  the  re- 
cording secretary,  on  the  pain  of  penalties  of  $25  to  $100 
for  failure.  By  making  the  leader  the  agent  of  the  man- 
ager instead  of  the  principal  to  the  contract,  the  manager 
is  made  responsible  for  the  wages  of  the  musicians,  while, 
as  agent  of  the  musicians,  the  leader  who  fails  to  pay 
them  can  be  prosecuted  for  embezzlement  instead  of 
sued  for  a  debt,  and  at  the  same  time  their  wages  while 
in  his  hands  are  exempt  from  attachment  for  his  debts. 
These  contracts  probably  would  be  thrown  out  of  court 
on  the  same  ground  that  the  foregoing  injunction  was 
dissolved,  although  they  have  never  been  tested.  The 


308  LABOR  AND   ADMINISTRATION 

union  has  a  more  expeditious  remedy.  It  fines  or  expels 
the  leader  for  violating  the  rules,  and  the  St.  Louis  local 
has  collected  in  this  way  at  least  one  fine  as  high  as  $1000. 
Evidently,  it  is  through  control  of  the  leaders  that  the 
union  is  trying  to  control  the  trade.  Partly  on  this 
account  the  union  has  failed  as  yet  to  introduce  well- 
recognized  agencies  of  other  crafts  composed  solely  of 
wage-earners.  Few  of  the  locals  have  a  "  business  agent " 
or  "  walking  delegate."  Such  an  officer  has  not  been 
needed  for  purposes  of  organization,  since  the  trade  has 
been  fully  organized  in  other  ways.  He  would  be  needed 
only  as  a  detective  to  prevent  leaders  and  members  from 
violating  the  rules,  and  especially  from  paying  and  accept- 
ing less  than  the  minimum  scale  of  prices.  The  usual 
method  of  cutting  prices  is  for  the  members  to  pay  back 
secretly  to  the  leader  a  rebate  on  the  published  tariff. 
There  are  other  forms  of  rebate  easily  prevented,  such 
as  accepting  tickets  as  part  payment,  giving  presents, 
allowing  one's  self  to  be  fined  or  paying  extortionate 
prices  for  articles.  But  these  secret  rebates  are  not 
discovered  unless  the  parties  have  a  "  falling  out  "  and 
one  of  them  "  turns  union  evidence."  It  was  through 
such  an  exposure  that  the  leader  of  the  Metropolitan 
Opera  in  New  York  was  fined  $200  by  the  union.  In 
lieu  of  a  business  agent,  the  unions  have  given  much 
attention  to  perfecting  their  control  of  the  leaders. 
These  are  required  to  be  members  of  the  union,  and 
members  are  prohibited  from  playing  for  non-union 
leaders.  This,  of  course,  subjects  the  leader  to  discipline, 
but  it  injects  a  diversity  of  interests  into  the  organiza- 
tion. The  result  is  several  more  or  less  futile  rules. 
The  leader  in  St.  Louis  is  expelled  if  he  offers  a  member 
less  than  the  schedule  of  rates,  or  if  he  threatens  to  black- 


THE  MUSICIANS  309 

list  a  member,  either  for  accepting  other  engagements  or 
for  reporting  infractions  of  the  rules.  Again,  the  leaders, 
although  a  small  minority,  are  likely  to  have  undue 
influence  through  their  power  as  employers.  To  reduce 
their  power,  nearly  all  of  the  unions  prohibit  a  leader 
from  taking  a  contract  for  a  season  engagement  where 
he  cannot  personally  be  present.  The  value  of  this  rule 
is  seen  by  contrast  in  the  case  of  Baltimore,  where  one 
leader  has  secured  the  contracts  for  all  of  the  theatres. 
He  thereby  controls  the  best  opportunities  for  employ- 
ment of  his  fellow-members,  and  this  enables  him  to 
control  the  meetings  and  to  dictate  the  policy  of  the  union. 
Consequently  the  scale  of  wages  is  lower  and  the  con- 
ditions of  employment  inferior  to  those  in  other  places, 
and  Baltimore  musicians  are  considered  a  menace  in 
competition  with  Washington  and  Philadelphia  musi- 
cians. In  Brooklyn,  too,  a  single  leader  controls  all 
of  the  theatres,  but  this  has  not  led  to  abuse,  because  the 
Brooklyn  musicians  are  a  small  minority  of  the  metro- 
politan union.  The  rule  of  several  other  unions,  by 
preventing  such  a  monopoly,  preserves  to  the  rank  and 
file  a  stronger  control.  The  Chicago  local  expelled  a 
leader  for  taking  the  contracts  for  three  theatre  orchestras. 
A  local  leader  is  not  permitted  to  import  or  "  colonize  " 
musicians,  even  if  they  are  members  of  other  locals,  with- 
out the  consent  of  his  local.  The  case  is  different  with 
"  travelling  leaders."  There  are  three  well-known 
grades  of  travelling  theatrical  companies.  New  York 
is  the  centre  where  these  are  made  up,  though  a  few  go 
out  from  Chicago.  One  grade  is  the  opera,  or  minstrel 
show,  with  its  own  complete  orchestra  and  leader,  or 
the  symphony  company.  Such  a  company  is  inde- 
pendent of  local  musicians,  and,  like  the  Boston  Sym- 


3io  LABOR  AND  ADMINISTRATION 

phony  Orchestra,  is  able  to  continue  non-union.  The 
next  grade  is  the  "  skeleton  "  orchestra,  composed  of 
three  or  four  musicians  and  the  leader.  These  must  be 
members  in  good  standing,  else  they  cannot  secure  local 
musicians  in  the  places  visited,  to  fill  out  their  orchestra. 
Last  is  the  theatrical  company  that  carries  only  its 
leader,  who  must  be  a  pianist,  in  case  he  cannot  make  up 
a  local  orchestra,  and  must  be  a  member  if  he  expects  to 
employ  local  players.  If  the  skeleton  orchestra  or  single 
leaders  remain  in  a  place  less  than  four  weeks,  they  do 
not  take  out  transfer  cards  from  the  local  of  their  origin. 
If  they  stay  longer,  they  must  transfer  their  member- 
ship. Some  of  these  leaders  are  not  members  of  a  local, 
and,  in  order  to  bring  them  in,  the  Federation  at  a  recent 
convention  provided  a  card  of  conditional  membership 
issued  by  the  national  organization.  When  such  a  leader 
"  locates,"  his  card  is  converted  into  a  local  member- 
ship. If  a  leader  holding  such  a  card  plays  in  a  non- 
union house,  his  card  is  forfeited,  and  this  prevents  him 
from  getting  an  orchestra  in  a  union  house.  By  means 
of  these  rules  the  Federation  has  effectually  "  unionized  " 
the  theatres  and  orchestras  throughout  the  United  States 
and  Canada.  There  remain  but  few  leaders,  theatres 
and  orchestras  on  the  "unfair  list,"  the  Boston  Symphony 
Orchestra  being  the  only  important  one. 

It  will  be  seen  that  the  musicians'  union  is  not  only  a 
"  closed  shop  "  union :  it  is  also  a  closed  employers' 
association.  The  contractor,  or  leader,  must  be  a  mem- 
ber of  the  union.  Consequently,  unlike  other  crafts 
in  the  modern  labor  movement,  the  musicians  retain  the 
character  of  a  guild  with  its  masters  and  journeymen. 
This  diversity  of  interest  has  led  to  considerable  dis- 
cussion and  to  the  proposal  that,  imitating  other  unions, 


THE  MUSICIANS  311 

the  leaders  should  be  excluded,  and  that  a  member  who 
takes  a  contract  should  be  given  an  honorary  discharge. 
The  nearest  that  this  proposal  has  come  to  be  acted  upon 
is  at  Cedar  Rapids,  where  the  local  classifies  the  leaders 
and  requires  them  to  take  out  a  leader's  license,  for  which 
they  pay  $25.  This  arrangement  is  an  innovation.  In 
other  places  the  leaders  are  on  the  same  basis  as  other 
members,  and  any  member  can  become  a  leader  simply  by 
getting  a  contract.  The  musicians  point  out  that  their 
leaders  are  on  much  more  intimate  terms  with  the  rank 
and  file  than  are  the  contractors  in  other  trades.  Their 
interests  are  the  same.  They  require  no  capital  beyond 
that  of  the  others ;  they  perform  in  company  with  their 
fellows ;  and  they  are  continually  reverting  to  ordinary 
membership.  On  the  other  hand,  the  ease  with  which 
a  member  becomes  a  leader  causes  a  severe  competition 
for  leadership.  In  New  York  fifty  musicians  may  be 
"  pulling  the  wires  "  to  get  a  theatrical  leader's  position 
away  from  him.  Nearly  all  the  grievances  and  discipline 
with  which  the  union  is  occupied  spring  from  this  cut- 
throat competition.  If  the  leaders  were  separated,  if 
they  formed  their  own  contractors'  association  with 
their  own  rules  and  discipline,  and  if  they  then  worked 
under  a  trade  agreement  with  the  union,  the  two 
together  could  rule  out  the  unscrupulous  leader,  and  the 
conditions  would  be  bettered  for  both  leaders  and  men. 
These  views,  however,  are  as  yet  held  by  but  a  few.  To 
the  historical  student  it  is  interesting  to  see  in  this 
belated  organization  the  same  forces  at  work  which 
long  since  separated  the  guilds  of  other  crafts  into  the 
trade  union  and  the  employers'  association.1 

1  A  similar  development,  completed  in  the  year  1902,  is  described  in 
the  article,  "The  Teamsters  of  Chicago."  See  the  author's  "Trade 
Unionism  and  Labor  Problems,"  pp.  36-65. 


3i2  LABOR  AND   ADMINISTRATION 

The  American  Federation  of  Musicians,  as  its  name 
indicates,  is  a  federation  of  local  unions  rather  than  a 
fully  developed  national  union.  While  the  national 
organization  is  supreme,  yet  the  spirit  of  local  autonomy 
is  so  strong  that  the  delegates  have  withheld  important 
powers  conceded  to  other  national  trade  unions.  The 
Federation  is  prohibited  from  adopting  a  general  benefit 
or  insurance  assessment.  The  revenues  of  the  national 
are  only  two  cents  a  month  from  each  member,  —  a  sum 
less  than  one-half  the  revenue  of  the  'longshoremen,  and 
only  one-twentieth  of  that  of  the  moulders  and  one- 
sixtieth  of  the  cigar-makers.  The  locals  regulate  their 
initiation  fees,  and  a  local  with  high  fees  assesses  the 
difference  on  a  member  admitted  by  transfer  from  a  local 
with  low  fees.  That  the  power  of  the  national  organiza- 
tion is  growing  is  seen  in  the  recent  rule  that  this  assess- 
ment shall  not  exceed  $25.  This  was  directed  against 
the  New  York  local  whose  fees  are  $100,  making  the 
difference  assessed  to  members  coming  from  other  locals 
as  high  as  $75  to  $95.  This  question  of  "  universal 
membership  "  has  agitated  the  conventions  more  than 
any  other,  and  has  led  to  the  partial  breaking  down  of 
local  barriers  already  described.  Remnants  of  the  bar- 
riers are  seen  in  the  rule  against "  colonizing,"  by  which 
a  local  prevents  a  local  leader  from  bringing  in  members 
of  other  locals  for  permanent  engagements  and  even  for 
single  engagements.  Evidently,  until  universal  mem- 
bership is  fully  established,  the  closed  shop  remains  a 
local  monopoly. 

Naturally,  the  local  unions  of  musicians  are  jealous  in 
admitting  members,  and  the  national  organization  has 
been  compelled  to  legislate  upon  this  subject.  Each 
local  is  required  to  have  an  examination  board  to  pass 


THE  MUSICIANS  313 

upon  the  eligibility  of  applicants,  but  any  local  rule  pro- 
hibiting the  admission  of  any  competent  musician  is 
declared  null  and  void,1  and  the  applicant  has  an  appeal 
to  the  national  executive  board.  All  new  locals  must 
hold  their  charters  open  for  at  least  one  month,  and  must 
invite  all  musicians  within  their  jurisdiction,  through 
the  press  or  otherwise,  to  become  members.2  Only 
expelled  or  suspended  members  of  the  Federation  are 
excluded,  and  these  may  be  readmitted  on  appeal  or  by 
payment  of  a  fine.  Members  are  strictly  forbidden  to 
play  with  non-members,  except  in  the  cases  already 
noted.3 

These  rules  maintaining  the  closed  shop  have  their 
significance  in  view  of  the  wide  recruiting  area  for  the 
supply  of  musicians.  The  union  necessarily  can  pre- 
scribe no  term  of  apprenticeship.  A  musician's  training 
begins  in  childhood,  and  requires  many  years  of  applica- 
tion. Teachers  of  music  are  found  in  every  considerable 
locality,  and  those  who  are  members  of  the  union  are 
as  free  as  others  to  organize  classes  and  solicit  pupils. 
In  fact,  this  is  a  source  of  income  to  many  of  them.  Of 
the  thousands  who  take  up  instrumental  music,  there 
are  relatively  few  who  come  to  look  upon  it  as  their 
vocation  from  which  to  earn  their  living.  These  must 
be  admitted  to  the  union,  else  their  competition  on  the 
outside  will  menace  the  scale  of  prices.  But  there  are 
others  to  whom  music  is  only  an  avocation,  at  which 
they  can  pick  up  a  few  dollars  outside  their  regular  voca- 
tion. These,  like  the  women  who  work  at  home  for 
"  pin  money/'  are  the  more  serious  menace  to  those  who 
depend  on  their  skill  for  all  their  money.  To  bring  them 

1  Constitution,  Art.  V,  Sec.   20. 

2  Ibid.,  Sec.  i.  *  Ibid.,  Sec.  16. 


314  LABOR  AND  ADMINISTRATION 

into  the  organization  and  to  bind  them  to  a  minimum 
scale  of  prices  is  a  decided  protection  to  the  professional 
element.  Of  the  64,000  members  throughout  the 
country,  over  one-half  are  working  also  at  other  occupa- 
tions. One  consequence  of  the  musicians'  affiliation 
with  the  trade  unions,  is  their  rule  requiring  such  mem- 
bers to  join  also  the  local  union  of  their  regular  craft, 
wherever  such  exists.1  Thus  the  musicians  offer  the 
peculiar  spectacle  of  a  union  largely  composed  of  mem- 
bers of  other  unions  and  confronted  by  the  problem  of 
maintaining  two  minimum  scales  of  wages.  However, 
this  applies  mainly  to  smaller  towns.  In  such  a  town, 
perhaps,  only  the  leader  may  follow  music  for  his  liveli- 
hood, while  all  the  other  members  follow  other  occupa- 
tions as  well.  In  such  a  town  the  initiation  fee  is  usually 
$5,  —  the  minimum  prescribed  by  the  national  organiza- 
tion. In  larger  towns  the  highest  is  $25,  excepting  New 
York,  Chicago  and  San  Francisco,  which  in  the  past  ten 
years  have  placed  it  at  $100.  These  larger  fees  tend  to 
exclude  the  incidental  musician  and  to  reserve  the  field 
for  the  strictly  professional. 

This  competition  of  semi-musicians  has  led  those  who 
look  upon  themselves  as  artists  to  advocate,  in  times 
past,  State  regulation  of  the  profession  instead  of  trade- 
union  regulation  of  the  craft.  They  point  out  that  State 
governments  restrict  the  practice  of  some  professions 
to  those  who  have  passed  a  prescribed  examination, 
and  that  this  restriction  covers  not  only  lawyers,  phy- 
sicians, dentists,  pharmacists  and  teachers,  but  also 
veterinarians,  architects,  horse-shoers,  bakers,  and  so  on. 
In  line  with  these  precedents  a  bill  was  introduced  in 
the  Illinois  legislature  creating  a  "  Commission  of  Music," 
1  Standing  Resolution  15. 


THE  MUSICIANS  315 

to  be  composed  of  five  members  selected  by  the  governor 
from  ten  persons  nominated  by  the  Illinois  Music 
Teachers'  Association,  with  power  to  grant  licenses  on 
examination  to  teachers  of  music.  Its  advocate  con- 
tended that  the  low  state  of  their  art  was  due  to  the  many 
self-styled  artists,  and  that,  like  other  professions,  theirs 
would  be  improved  and  elevated  by  legal  selection  of  the 
fit  and  exclusion  of  the  unfit.  In  lieu  of  the  enactment 
of  such  a  law  the  musicians'  union  tries  to  reach  a  similar 
result  through  its  "  closed  shop,"  its  examination  boards 
and  its  minimum  wage.  The  restrictions  which  the 
professional  musician  advocates  for  the  sake  of  his  art,  the 
trade-union  musician  enacts  for  the  sake  of  his  living. 
The  latter  frankly  bases  his  policy  on  the  commercialism 
which  has  gained  control  of  the  country,  and  which,  on 
the  one  hand,  sends  its  greatest  of  artists  "  out  for  the 
almighty  dollar,"  and,  on  the  other  hand,  "  cheapens 
the  wages  of  the  ordinary  musician  by  the  same  tactics 
that  employers  pursue  with  other  hired  help." 

This  effort  to  protect  the  minimum  wage  is  seen  in 
several  of  their  regulations.  One  is  the  exclusion  of 
"  juvenile  bands."  A  leader  or  teacher  organizes  his 
pupils  and  advertises  them  under  a  taking  or  deceptive 
name.  Their  parents  provide  uniforms  and  instruments, 
besides  paying  the  teacher  a  small  sum  for  tuition.  After 
a  few  months  the  leader  takes  contracts,  and  his  pupils 
play  in  public  for  "  the  experience."  This  form  of  child 
labor  is  prevented  by  the  exclusion  of  "  incompetent " 
musicians  and  of  persons  under  sixteen  years  of  age  from 
membership  in  the  union. 

Another  rule  prohibits  cooperative  or  "  share  plan  " 
engagements,  unless  the  same  are  "  proven  absolutely 
non-competitive."  A  cooperative  band  plays  on  a  specu- 


3i6  LABOR  AND   ADMINISTRATION 

lation  for  a  nianager,  the  pay  of  the  members  being  a 
share  of  the  receipts.  If  such  a  band  comes  in  com- 
petition with  a  leader  who  pays  the  union  scale,  the  latter 
may  find  it  difficult  to  secure  the  contract.  Non-com- 
petitive engagements,  where  such  bands  may  play,  are 
those  for  practice,  or  for  educational  purposes,  or  for 
raising  funds  to  buy  a  uniform  or  for  creating  a  class 
of  engagements  not  in  vogue  heretofore.1  In  these  the 
band  assumes  all  responsibility,  is  not  engaged  and  so 
does  not  compete  with  other  bands. 

The  opposition  of  the  musicians  to  army  and  marine 
bands  has  come  vividly  before  the  public  more  than  any 
other  policy  of  the  organization.  Enlisted  musicians 
of  the  army  and  navy  are  not  admitted  to  membership, 
and  a  member  enlisting  severs  thereby  his  membership. 
No  member  is  permitted  to  play  a  paid  engagement  with 
any  enlisted  man  On  noted  occasions  at  Baltimore, 
Chicago  and  San  Francisco  union  bands  have  withdrawn 
from  pageants  in  which  government  bands  took  part. 
Repeated  complaints  against  their  competition  have  been 
made  to  the  authorities  at  Washington,  and  in  this  even 
the  National  League  of  "  artists"  led  the  way  twenty  years 
ago.  The  enlisted  men  are  equipped  by  the  govern- 
ment, and  are  paid  a  salary  somewhat  less  than  the  union 
scale.  They  are  allowed  to  supplement  their  salaries 
by  private  engagements.  In  most  cases  their  orders 
forbid  accepting  less  than  prevailing  civilian  rates,  but 
the  National  League  in  1888  compiled  one  hundred  cases 
of  violation  of  these  orders.  The  situation  illustrates 
the  economist's  "  marginal  man."  In  St.  Louis,  prior 
to  1886,  there  were  five  civilian  bands  and  one  Cavalry 

1  "Decisions  of  the  President,"  International  Musician,  Feb.,  1903, 
p.  2. 


THE  MUSICIANS  317 

Depot  band  stationed  at  Jefferson  Barracks.  The  five 
bands  were  at.  all  times  compelled  to  adjust  their  prices 
to  what  managers  said  they  could  get  the  army  band  for. 
The  one  band  was  a  club  used  in  turn  on  each  of  the  others. 
Finally,  the  others  adopted  a  joint  defence,  —  a  boycott. 
This  was  effective  only  where  the  manager  needed  more 
than  one  band  or  needed  one  band  continuously.  Last 
of  all,  the  Federation  appealed  from  the  military  and 
naval  authorities  to  Congress,  and  now  secured  legisla- 
tion to  raise  the  pay  of  all  members  of  enlisted  bands 
and  to  prohibit  them  from  playing  at  paid  engagements 
while  in  the  service  of  the  government. 

It  is  significant  that  the  union's  antagonism  does  not 
apply  to  navy  yard  bands.  These  are  composed  of  local 
musicians  who  do  not  take  contracts  as  a  band,  but  go 
out  as  individuals.  The  antagonism  applies  only  to 
enlisted  musicians,  and  these,  by  their  oath  of  service,  are 
under  control  of  the  government  rather  than  the  union. 
They  cannot  be  ordered  on  strike  or  boycott  if  their 
superior  officer  orders  differently.  They  cannot  be 
summoned  to  union  meetings  or  examined  and  punished 
for  cutting  under  the  union  prices.  They  menace  the 
minimum  wage  because  they  menace  the  union  discipline. 

Immigration,  too,  is  a  menace  that  has  troubled  the 
musicians.  Though  themselves  largely  foreign-born, 
especially  German,  yet  they  have  taken  a  stand  against 
free  immigration.  Even  the  officers  of  the  National 
League,  in  spite  of  their  artists'  pride,  seriously  contended 
before  the  immigration  authorities  that  under  the  alien 
contract  labor  law  musicians  should  be  excluded,  on  the 
ground  that  they  were  laborers  rather  than  artists,  whom 
the  law  admits.  The  Federation,  in  line  with  its  trade 
unionism,  consistently  urges  Congress  to  class  musicians 


3i8  LABOR  AND  ADMINISTRATION 

as  laborers,  thereby  bringing  them  under  the  alien 
contract  labor  law.1  It  declaims  against  "  the  whole- 
sale importation  of  musicians  "  as  "  endangering  the 
existence  of  musicians  in  this  country,  and  depreciating 
their  opportunities  to  earn  a  respectable  livelihood  as 
American  citizens."  2  It  decries  the  influx  of  foreign 
bands,  adopting  "  some  high-sounding  royal  or  other 
foreign  title,"  "  picked  up  in  the  streets  of  large  cities," 
managed  by  some  shrewd  American,  "  who  lines  his 
pockets  by  adopting  the  degrading  padrone  system  of 
Europe,  under  which  no  self-respecting  American  cit- 
izen can  exist,"  and  proceeds  to  declare  such  aggre- 
gations "  unfair  "  and  to  boycott  managers  who  hire 
them.  It  welcomes  "  legitimate  "  foreign  bands  and 
orchestras  making  concert  tours  under  fair  conditions, 
"but  will  resist  to  the  last  these  fraudulent  aggregations."3 
The  Federation  sent  a  circular  in  their  own  languages  to 
the  musicians  of  Europe,  warning  them  against  specula- 
tors for  the  World's  Fair  at  St.  Louis  and  advising  them 
that  they  would  find  the  cost  of  living  five  times  as  great 
as  in  their  own  countries.4  Finally,  the  constitution 
of  the  Federation  requires  all  members  to  be  citizens  or  to 
have  "  declared  their  intention,"  and  to  complete  their 
naturalization  "  with  due  diligence." 5  Thus  the  closed 
shop  and  the  boycott  are  the  musicians'  regulation  of 
immigration. 

Wages  and  Hours 

There  is   hardly   a  craft  whose  earnings  are  more 
uncertain  than  those  of  the  musician.    The  steadiest  job 

1  Standing  Resolution  10.  2  Ibid.,  i~  3  Ibid.,  15. 

4  International  Musician,  June,  1902,  p.  9. 
«  Constitution,  Art.  V.,  Sec.  8. 


THE   MUSICIANS  319 

is  that  in  theatres  for  eight  months  and  summer  gardens 
for  four  months.  In  the  St.  Louis  local  of  975  members, 
only  about  150  have  these  positions.  There  the  union 
scale  for  theatres  provides  $23  per  week,  for  not  more  than 
seven  performances,  up  to  $30  for  not  more  than  fourteen 
performances,  to  which  is  added  one  rehearsal  a  week. 
At  these  prices  a  musician  playing  every  night  in  the 
year,  with  two  matinees  and  a  rehearsal  each  week, 
could  earn,  say,  $1200.  But  such  a  feat  is  impossible. 
These  men  actually  earn  about  $700  or  $800  in  eight 
months  and  $300  in  the  summer  months,  making  $1000 
or  $1100  for  the  majority  of  theatrical  positions.  These, 
of  course,  are  minimum  rates  of  pay,  as  are  all  of  the  other 
scales ;  and  there  are  certain  ones,  such  as  first  violin, 
first  cornet  and  so  on,  who  receive  more  than  the  mini- 
mum. There  are  also  "  extras/'  so  that  a  few  may  earn 
as  much  as  $1200.  When  the  St.  Louis  union  was 
organized  twenty  years  ago,  there  were  three  theatres 
paying  the  above  rates.  These  were  not  changed,  but 
the  others  were  raised  to  the  same  level,  bringing  them 
up  about  15  per  cent.  The  best  men  have  always 
received  the  higher  rates  of  pay,  in  addition  to  more 
frequent  employment.  Their  gain  has  come  from  regu- 
lating the  hours,  limiting  the  number  of  rehearsals, 
getting  paid  for  extra  rehearsals  and  extra  performances 
and  prompt  payment  of  salaries  in  full. 

The  other  eight  hundred  musicians  in  St.  Louis  must 
depend  for  their  earnings  upon  all  sorts  of  fleeting  engage- 
ments. It  is  here  that  the  union  has  mainly  affected 
the  rates  of  pay  and  the  hours  of  work.  The  "  price- 
list  "  covers  them  all  with  particularity  and  is  amended 
whenever  a  gap  appears.  Formerly,  at  private  parties, 
weddings,  balls,  entertainments  and  the  like,  the  pay 


320  LABOR  AND  ADMINISTRATION 

was  $2  to  $4  for  the  night.  The  concessionaire  might 
keep  the  musicians  till  daylight,  though  but  a  few  dancers 
held  out.  Now  the  player  gets  $4  till  2  A.M.  and  $i  an 
hour  thereafter.  Hence  the  dancers  do  not  remain  after 
3  or  4  A.M.  Parades  were  $3  for  four  hours.  Now  they 
are  $4  for  the  first  hour  on  Sundays  and  $3  on  week-days, 
with  $i  for  each  additional  hour.  All  day  to  7  P.M., 
or  afternoon  and  evening  to  11.30  o'clock,  is  $10. 
Funerals  were  $1.50.  Now  they  are  $3  or  $4  "  if  to  a 
cemetery,"  or  $5  "  with  marching  after  leaving  the 
cemetery."  And  so  on  for  baseball,  Fourth  of  July, 
corner-stone  laying,  flag-raising,  dedications,  saloon 
concerts  and  the  hundred  other  occasions  where  the 
musician  softens  sorrow,  fires  patriotism  or  drowns 
bedlam. 

Several  kinds  of  calls  formerly  were  not  paid  for  at  all, 
but  now  they  have  a  scale  of  prices.  Members  are  pro- 
hibited from  donating  their  services  unless  the  union  as 
a  whole  votes  to  volunteer,  as  for  some  great  public 
service,  like  the  relief  of  the  Johnstown  sufferers.  Thus 
church  music  was  often  furnished  free  as  an  advertise- 
ment for  other  work.  Now  a  single  service  is  $5,  and 
three  services  the  same  day  $10.  Decoration  Day  and 
memorial  services  were  free  on  account  of  sentiment. 
They  are  $4,  with  marching  extra  at  $i  an  hour. 
Serenades  were  free,  and  a  leader  could  control  the  time 
of  his  men  by  calling  them  together  when  they  had  "  a 
night  off  "  to  serenade  a  hoped-for  patron.  Now  sere- 
nades are  $3  the  first  hour,  with  extras  for  marching  and 
overtime. 

The  cost  of  their  uniforms  is  also  a  matter  of  wages. 
Each  bandmaster  or  leader  wishes  his  own  uniform, 
sometimes  fantastic  and  costly.  This  the  musician  is 


THE   MUSICIANS  321 

often  compelled  to  buy,  and  so  to  own,  say,  four  or  five 
different  uniforms.  The  St.  Louis  local  led  the  way  in 
establishing  a  regulation  uniform,  which  members  are 
required  to  wear.  It  costs  about  $18.50,  can  be  made 
by  one's  own  tailor,  hence  is  always  a  fit,  avoids  conta- 
gion, provides  a  new  suit  for  clear  days  and  indoors  and 
an  old  one  for  wet  days  and  parades,  and,  not  least 
important,  enables  the  public  to  distinguish  between 
union  and  non-union  bands.  A  leader  may  furnish,  if 
he  likes,  a  distinctive  suit  for  himself,  or  he  may  furnish 
only  a  one-inch  band  with  his  own  lettering  to  be  placed 
on  the  cap.  When  the  Chicago  local,  in  1905,  adopted 
the  regulation  uniform,  they  were  checked  by  an 
injunction  obtained  by  certain  leaders.  This,  later,  was 
withdrawn,  and  the  union  uniform  is  in  line  of  general 
adoption. 

Curiously,  the  musician's  demands  have  not  lessened 
his  calls.  Guests  at  cafes,  restaurants  and  hotels  were 
regaled  by  dirty  gypsies  or  mandolin  negroes  or  other 
itinerants.  Now  fifty  musicians  in  St.  Louis  are  regu- 
larly employed  at  $5  for  a  single  day  of  seven  hours, 
or  $21  a  week  of  seven  days  or  a  score  of  other  price 
and  time  combinations.  Trolley  parties  have  appeared. 
Picture  shows  employ  hundreds.  Phonograph  musicians 
in  New  York  dispense  harmony  to  the  ends  of  the  earth 
at  $1.25  an  hour.  The  taste  of  the  community  has 
improved,  its  wealth  has  grown,  its  accessibility  has 
extended  and  the  musician  gets  more  pay  and  more  work. 
The  foregoing  prices  and  changed  conditions  pertain 
mainly  to  the  St.  Louis  local.  In  New  York  the  price- 
list  is  somewhat  higher  and  has  not  been  changed  for 
forty  years.  The  difficulty  there  has  been  in  enforcing 
the  scale.  About  300  of  the  best  men  earn  from  $1500 


322  LABOR  AND   ADMINISTRATION 

to  $2000  a  year,  getting  steady  employment  at  the 
minimum  scale,  while  about  one  in  fifty  of  all  the  members 
gets  more  than  the  minimum.  But  the  majority  earn 
less  than  $1000,  and  in  some  lines,  like  balls,  the  com- 
petition and  evasion  have  been  so  great  that  the  scale 
became  a  dead  letter  and  had  to  be  reduced. 

Although  the  demand  for  musicians  has  increased,  yet 
there  is  a  rule  of  the  national  union  which  carries  the  sug- 
gestion that  the  doctrine  of  "  making  work  "  has  a  place 
in  the  craft.  This  law  permits  a  local  to  specify  the 
minimum  number  of  men  allowed  to  play  in  a  theatre 
orchestra.  The  New  York  local  places  the  minimum 
number  of  men  to  be  employed  in  a  theatre  at  six ;  St. 
Louis  at  seven.  But  these  absurdly  low  figures  give 
evidence  rather  of  the  musician's  longing  to  produce 
artistic  music  than  of  his  policy  to  make  work.  This 
is  shown  by  the  refusal  of  Henry  Irving,  on  his  first 
appearance  in  New  York,  to  go  on  with  the  regular 
house  orchestra  of  twelve  men,  when  he  had  been 
accustomed  in  England  to  forty.  He  compromised  on 
thirty-five.  The  union  minimum  of  six  or  seven  is  but 
a  feeble  effort  to  counteract  the  managers'  view  that  the 
American  musician,  like  the  American  mechanic,  should 
turn  out  more  work  than  his  European  competitor. 
With  the  more  recent  increase  in  wages  and  business 
methods  the  union  minimum  is  becoming  the  manager's 
maximum.  For  Henry  Irving's  artistic  reaction  in  this 
matter,  the  union  made  him  an  honorary  member. 

Doubtless  the  idea  of  making  work  appeals  to  the 
locals  and  the  members.  The  New  York  local  fines  a 
member  for  playing  more  than  one  instrument  at  a 
time  at  a  single  engagement,  "  this  being  against  the 
interest  of  our  fellow-members."  For  the  same  reason 


THE  MUSICIANS  323 

it  denounces  by  resolution  the  "  exactions  of  unscrupu- 
lous leaders  who  require  bass  drummers  to  play  cymbals 
with  drum  while  marching,  and  snare  drummers  to 
play  bass  drums  with  pedal  attachments  on  single- 
night  engagements."  The  musician,  like  the  machinist, 
clings  to  the  "  one-man-one-machine  "  tradition  of  his 
craft.  His  arguments  are  right  in  esthetics,  and  may 
be  right  in  economics,  for  he  reasons  that,  if  the  ear  of 
the  American  public  were  cultivated  to  good  music,  it 
would  demand  more  of  it. 


CHAPTER  XVII       . 

WAGE-EARNERS    OF   PITTSBURGH1 

"  Pittsburgh  the  Powerful,"  "  The  Iron  City,"  "  The 
Workshop  of  the  World  "  —  situated  on  the  Alleghany 
plateau  at  the  headwaters  of  the  Ohio,  rich  in  mineral 
resources,  easily  accessible  to  markets,  this  district  is 
beyond  all  others  the  strategic  centre  for  the  production 
of  wealth. 

"  Pittsburgh  Riots  of  1877,"  "  Homestead  Strike  of 
1892,"  "  Pittsburgh  Millionnaire  "  —  these  tell  of  Pitts- 
burgh's strategic  position  in  another  campaign  —  the 
world- wide  struggle  for  the  distribution  of  wealth. 

Gigantic  in  its  creation  of  wealth,  titanic  in  its  con- 
tests for  the  division  of  wealth,  Pittsburgh  looms  up  as 
the  mighty  storm  mountain  of  Capital  and  Labor.  Here 
our  modern  world  achieves  its  grandest  triumph  and 
faces  its  gravest  problem. 

Andrew  Carnegie  has  said  that  the  iron  and  steel 
industry  is  either  Prince  or  Pauper.  Certainly,  no  staple 
manufactured  article  responds  so  violently  to  the  pros- 
perity and  depression  of  the  country  as  pig  iron.  So  it 
is  with  all  the  industries  of  Pittsburgh  that  follow  in  the 
train  of  King  Iron.  When  the  Pittsburgh  Survey 
began  its  work  in  September,  1907,  the  Prince  was  on 

1  Charities  and  the  Commons,  March,  1909,  afterwards  The  Survey. 
In  the  collection  of  material  and  the  preparation  of  this  article  I  have  had 
the  assistance  of  William  M.  Leiserson  and  John  A.  Fitch,  graduate 
students  in  the  University  of  Wisconsin,  and  others,  engaged  on  the 
"Pittsburgh  Survey."  The  figures  are  for  1907-1908. 

324 


WAGE-EARNERS   OF  PITTSBURGH         325 

his  throne  —  full  years  of  prosperity  and  glorious  op- 
timism had  been  his.  Long  before  September,  1908, 
Carnegie's  pauper  walked  the  streets.  From  every  type 
and  class  of  labor  came  the  report  of  a  year  with  only 
half,  or  three-fourths  or  even  one-third  of  the  time 
employed.  Hardly  another  city  in  the  country  was  hit 
as  hard  or  stunned  as  long  by  the  panic  as  Pittsburgh. 
The  overwork  of  1907  was  the  out-of-work  of  1908. 

First  Prince,  then  Pauper;  overwork,  then  under- 
work ;  high  wages,  no  wages ;  millionnaire,  immigrant ; 
militant  unions,  masterful  employers ;  marvellous  busi- 
ness organization,  amazing  social  disorganization.  Such 
are  the  contrasts  of  Pittsburgh  the  Powerful,  the  Work- 
shop of  the  World. 

Outwardly,  western  Pennsylvania  is  not  inviting. 
The  surface  is  hilly,  with  narrow  and  precipitous  valleys 
and  few  flood  plains.  Not  much  of  the  land  is  suited 
to  cultivation,  and  its  meagre  agriculture  is  confined 
to  the  uplands.  But  for  heavy  manufactures  nature 
has  peculiarly  exerted  herself.  Three  great  rivers  and 
three  smaller  ones  afford  transportation.  The  Alle- 
gheny comes  down  from  New  York,  draining  an  area 
of  11,500  square  miles.  From  West  Virginia  comes  the 
Monongahela.  At  "  The  Point  "  of  Pittsburgh  these 
two  rivers  mingle  their  waters  to  form  the  Ohio,  and  this 
river  carries  the  products  of  Pittsburgh  to  the  West  and 
South.  Within  the  district  the  larger  rivers  receive  the 
waters  of  smaller  ones.  The  Monongahela  receives  the 
Youghiogheny,  the  Allegheny  is  joined  by  the  Kiskemine- 
tas,  and  Beaver  River  flows  into  the  Ohio. 

Through  the  hills  which  line  these  rivers  run  enormous 
veins  of  bituminous  coal.  Located  near  the  surface, 
the  coal  is  easily  mined,  and,  elevated  above  the  rivers, 


326  LABOR   AND   ADMINISTRATION 

much  of  it  comes  down  to  Pittsburgh  by  gravity.  There 
are  twenty-nine  billion  tons  of  it,  good  for  steam,  gas 
or  coke.  Then  there  are  vast  stores  of  oil,  natural  gas, 
sand,  shale,  clay  and  stone,  with  which  to  give  Pitts- 
burgh and  the  tributary  country  the  lead  of  the  world 
in  iron  and  steel,  glass,  electrical  machinery,  street  cars, 
tin  plate,  air  brakes  and  fire  brick. 

To  the  gifts  of  nature  has  been  added  the  bounty 
of  government.  Besides  Pittsburgh's  share  in  tariff 
legislation,  Congress  has  appropriated  over  $17,000,000 
for  river  improvements.  The  Monongahela  in  its  orig- 
inal condition  was  navigable  for  steamboats  only  at 
high  stages.  Now  the  river  is  navigable  for  its  entire 
length  in  Pennsylvania ;  and  in  West  Virginia  steamboats 
can  go  up  as  far  as  Fairmont,  fifty-two  miles  beyond  the 
state  line. 

As  the  result  of  these  improvements,  freight  rates 
have  been  reduced  and  manufactures  stimulated.  Coal 
formerly  shipped  by  rail  now  goes  by  river  at  a  cost  in 
some  cases  reduced  as  much  as  eighty  per  cent.  The 
work  of  the  government  on  the  other  rivers  and  in  Pitts- 
burgh harbor  proper  has  brought  similar  results.  The 
Allegheny  River  and  the  Ohio  about  Pittsburgh  formerly 
abounded  in  boulders,  snags,  bars  and  shoals.  Most  of 
these  obstructions  have  been  removed,  and  the  govern- 
ment is  continuing  its  work  of  making  navigation  easy. 

The  transportation  system  provided  by  nature  and 
government  is  supplemented  by  a  network  of  railroads. 
Five  trunk-line  systems  have  main  lines,  branches  and 
leased  lines  to  the  number  of  twenty-two  radiating  from 
the  city.  Besides  these,  there  are  several  connecting 
lines  owned  by  the  steel  companies  binding  together  the 
various  parts  of  their  plants. 


WAGE-EARNERS   OF  PITTSBURGH         327 

Business  enterprise,  taking  advantage  of  these  re- 
sources, is  able  to  turn  out  from  the  Pittsburgh  District 
the  greatest  annual  tonnage  of  any  similar  area  in  the 
world.  The  greater  part  of  this  tonnage,  of  course, 
arises  from  the  heavy  products  of  coal  mines  and  steel 
mills.  Coal  mining  has  been  marvellously  perfected. 
Electricity  applied  to  undercutting  and  hauling  enables 
a  single  mine  to  turn  out  over  6000  tons  of  coal  a  day. 
On  certain  days  the  output  of  this  mine  has  reached  even 
7000  tons.  In  the  district  46,000,000  tons  are  pro- 
duced yearly. 

In  the  production  of  this  enormous  wealth  thousands 
of  workers  have  cooperated.  According  to  the  census, 
Pittsburgh  had  a  population  of  406,533.  According 
to  enthusiasts,  the  population  is  2,500,000.  Both  figures 
are  misleading.  The  first  limits  the  city  to  its  old  polit- 
ical boundaries,  not  including  Allegheny;  the  second 
extends  it  over  a  radius  of  seventy-five  miles  from  the 
Court  House,  and  includes  a  territory  under  the  govern- 
ment of  three  states  and  a  score  or  more  of  counties. 
It  is  difficult  to  define  the  limits,  but  the  whole  of  Alle- 
gheny county  is  homogeneous  in  an  economic  and  social 
sense  and  corresponds  roughly  to  what  is  termed  the 
Pittsburgh  District.  In  1907  this  Greater  Pittsburgh 
had  a  population  of  about  i  ,000,000,  of  whom  the  wage- 
earners  were  approximately  250,000  employed  in  3000 
establishments. 

How  do  these  wage-earners  fare  in  the  division  of 
products  derived  from  these  magnificent  resources? 
What  is  their  share  and  how  do  they  get  it  ?  These  are 
questions  which  are  fundamental  to  our  inquiry.  First, 
there  is,  everywhere,  the  great  ocean  of  common  labor, 
—  unprivileged,  competitive,  equalized.  Above  this 


328  LABOR  AND  ADMINISTRATION 

expanse,  here  and  there  for  a  time,  appear  the  waves 
and  wavelets  of  those  whom  skill,  physique,  talent,  trade 
unionism  or  municipal  favoritism  lifts  above  the  fluid 
mass.  Restless,  unstable,  up,  down,  and  on,  like  the 
ocean,  so  is  the  labor  of  Pittsburgh.  From  the  employ- 
ment bureau  of  a  hugh  machine  works  I  learned  that  in 
the  single  year  of  continued  prosperity,  1906,  they  hired 
21,000  men  and  women  to  keep  up  a  force  of  10,000.  If 
six  months  is  the  average  stay  of  a  workman  at  his  job, 
I  should  speak  not  of  the  ocean  but  of  the  maelstrom. 
And  this  restless  go-and-come  is  only  slightly  less  with 
the  skilled  than  with  the  unskilled,  for  the  foreman  of  the 
tool  room  in  the  same  establishment  estimated  that  to 
keep  up  his  force  of  the  hundred  highest  grades  of 
mechanical  skill,  he  had  hired  a  hundred  men  during 
the  year.  The  superintendent  of  a  mining  property, 
lacking,  however,  the  exact  records  of  my  machine-shop 
bureau,  insisted  on  the  amazing  figure  of  5000  hired 
during  the  year  to  maintain  a  force  of  1000.  The 
largest  operator  of  the  district  thought  this  was  too 
high,  but  said  that  2000  hirings  in  a  year  for  1000  per- 
manent positions  was  not  an  exaggerated  index  of 
labor's  mobility  in  the  Pittsburgh  District. 

What  are  we  to  infer?  Seemingly  the  economist's 
hypothesis  of  the  immobility  of  labor  compared  with  the 
mobility  of  capital  is  almost  reversed  within  the  Pitts- 
burgh District.  The  human  stream  from  Europe  and 
America  whirls  and  eddies  through  the  deep-cut  valleys 
of  the  Monongahela,  the  Allegheny,  the  Ohio,  like  the 
converging  rivers  themselves.  But  the  ponderous  fur- 
naces and  mills  remain  fixed  like  the  hills.  Is  it  the 
climate,  the  fog  and  the  smoke?  Is  it  the  difficulty  of 
finding  homes  and  the  cost  of  housing  and  living?  Yes, 


WAGE-EARNERS   OF   PITTSBURGH         329 

answers  my  employment  bureau,  which  has  made  a 
careful  study  of  its  own  peculiarly  ill  situation.  Is  it  the 
defeat  and  exclusion  of  trade  unionism,  which  in  other 
places  make  for  stability  and  the  rights  of  priority  for 
the  man  who  has  longest  held  the  job  ?  No,  for  neither 
the  inflow  nor  outflow  of  organized  mine-workers  is 
appreciably  less  than  that  of  unorganized  machine- 
workers  or  steel  workers.  Is  it  low  wages  and  long 
hours?  No,  answer  the  mine  workers  again.  Is  it 
specialization,  speeding  up,  over-exertion?  Yes,  very 
largely.  These  are  both  cause  and  effect  of  excessive 
restlessness.  By  minute  specialization  of  jobs,  by  army- 
like  organization,  by  keeping  together  a  staff  of  highly- 
paid  regulars  at  the  top,  the  industries  of  Pittsburgh 
are  independent  of  the  rank  and  file.  Two- thirds  of  the 
steel  workers  are  unskilled,  and  thousands  are  as  dumb 
as  horses  in  their  ignorance  of  English,  if  we  may  judge 
by  the  kind  of  "  gee,"  "  whoa,"  and  gestures  that  suffice 
for  commands.  Specialization,  elimination  of  skill, 
payment  by  the  piece  or  premium,  speeding  up,  these 
are  necessarily  the  aims  and  methods  of  Pittsburgh 
business,  that  turns  out  tons  of  shapes  for  the  skilful 
workers  of  other  cities  to  put  into  finished  products. 
Without  its  marvellous  framework  of  organization,  elim- 
inating dependence  on  personality  in  the  masses,  and 
thereby  rendering  personality  more  indispensable  in  the 
captains,  it  would  be  impossible  for  Pittsburgh  to  convert 
its  eddying  stream  of  labor  into  the  most  productive 
labor  power  of  modern  industry.  Enormous  rewards 
for  brains,  overseers,  managers,  foremen,  bosses, 
"  pushers  "  and  gang-leaders ;  remarkable  pressure 
towards  equality  of  wages  among  the  restless,  movable, 
competitive  rank  and  file,  —  these  are  results  in  the  dis- 


330  LABOR  AND  ADMINISTRATION 

tribution  of  wealth  of  Pittsburgh's  supremacy  in  the 
production  of  wealth. 

Day  Labor.  —  When  he  is  free  to  make  his  own  bar- 
gain with  the  employer,  and  competition  is  unrestricted, 
the  Pittsburgh  laborer  without  skill  or  command  of 
English  gets  in  prosperous  times  $1.35  to  $1.65  for  a  day 
of  ten  hours.  Outside  Pittsburgh,  in  the  mills  and  yards, 
i6|  cents  an  hour  seems  to  be  the  prevailing  rate  for  the 
kind  of  work  done  by  the  Slav  immigrant,  but  in  Pitts- 
burgh proper  15  cents  is  more  generally  paid  for  such 
labor.  Jones  and  Laughlin,  on  the  South  Side,  can  hire 
Slavs  at  15  cents  when  Homestead  and  the  mill  towns 
pay  i6|  cents.  The  difference  is  due  to  the  greater  con- 
gestion of  immigrants  in  Pittsburgh,  the  place  of  their 
first  arrival,  and  to  their  preference  for  the  city  with  its 
agencies  for  employment  and  its  fellowship  and  support 
when  looking  for  employment. 

To  the  railroads  and  contractors  goes  the  distinction 
of  paying  the  lowest  wages  for  day  labor.  Section 
hands,  mostly  Italians,  in  the  Pittsburgh  District,  earn 
13!  cents  an  hour.  But  the  padroni  on  special  contracts, 
seem  to  be  able  to  get  16^  cents.  I  struck  up  a  bargain 
with  one  of  these  enterprising  wholesale  dealers  in  hu- 
manity as  he  was  leading  his  gang  to  the  depot,  whom  he 
claimed  to  have  sold  at  this  rate  of  pay  for  work  in  Alle- 
gheny county.  He  offered  to  furnish  me  a  hundred  like 
them  for  a  month,  to  lay  natural  gas  pipe  in  Wisconsin  at 
$2  a  day,  provided  I  paid  their  round- trip  travelling 
expenses  back  as  far  as  Chicago  and  gave  him  the 
exclusive  contract,  together  with  the  sole  privilege  of 
running  the  commissary.  Giving  me  his  name  and 
number  in  the  telephone  book,  he  referred  me  to  the 
Standard  Oil,  for  whom  he  claimed  to  be  sending  men  to 


WAGE-EARNERS   OF  PITTSBURGH         331 

Oklahoma  for  the  same  kind  of  work  on  the  same  terms, 
but  with  round-trip  expenses  back  to  Pittsburgh.  Prob- 
ably the  railroad  companies,  at  $1.35  a  day,  were  pay- 
ing the  Italians  as  much  or  more  than  they  netted  out 
of  their  fellow-countryman,  this  Americanized  padrone. 

Eight  to  ten  dollars  for  a  week  of  sixty  hours  is  thus 
the  level  toward  which  the  wages  of  the  unskilled  gravi- 
tate, when  competition  is  free  and  English  unessential. 
A  higher  level  is  reached  when  trade  unionism,  mechani- 
cal skill,  municipal  politics  or  the  English  language, 
intervene. 

The  building  laborers,  for  example,  get  two  dollars 
for  a  day  of  eight  hours.  This  is  fifty  to  sixty  per  cent 
more  by  the  hour  than  is  paid  for  a  similar  zero  degree 
of  mechanical  skill  in  other  jobs.  The  hod-carrier,  whose 
work  is  no  more  skilled  but  more  risky,  gets  37!  cents, 
or  $3  a  day.  The  Building  Laborers  and  Hod  Carriers' 
Union  is  an  effort  of  the  American-born  and  English- 
speaking  white  and  colored  common  laborers  to  protect 
themselves  against  the  green  Slav  and  Italian,  but  it  is 
a  weak  organization,  and  only  the  aid  of  the  skilled, 
organized  trades  in  building  construction  preserves  their 
short  hours  and  high  pay.  Doubtless,  also,  the  long 
slack  period  of  building  operations  necessitates  a  higher 
rate,  though  the  Italian  on  contract  work  is  also  idle  in 
winter.  Municipal  and  state  politics  shows  its  hand  in 
the  rate  of  $2  for  eight  hours  for  city  work,  the  same  rate 
as  that  of  the  building  laborers. 

In  passing,  it  may  be  said  that  the  English  language  is 
worth  two  cents  an  hour.  The  non-English  worker  who 
starts  at  i6|  cents  would  start  at  i8|  cents  if  he  were 
sufficiently  Anglicized  for  a  job  where  English  is  needed. 
Additional  fitness,  adaptability,  politics  or  trade  union- 


332  LABOR  AND   ADMINISTRATION 

ism,  without  additional  mechanical  skill,  brings  him  an 
additional  two  cents,  eight  cents  or  even  ten  cents  an 
hour. 

Transportation  Work.  —  In  the  factories  and  on  the 
railroads  the  Slav  and  the  Italian  fill  the  ranks  of  com- 
mon labor;  it  is  among  the  teamsters  that  the  Negro 
finds  his  congenial  job.  The  factory  is  too  confined,  the 
work  too  monotonous ;  but  following  his  horses,  he  can 
see  the  sights  and  get  paid  for  riding.  Of  9000  teamsters 
in  the  district,  more  than  one-half  are  Negroes.  Their 
occupation  requires  no  more  skill  than  that  of  the 
ordinary  common  laborer.  The  usual  wage  is  $10  a  week 
for  the  driver  of  a  single  horse,  and  $12  for  two  horses. 
In  the  suburban  towns,  $14  is  usually  paid  for  driving  a 
two-horse  team.  Thus  the  predominant  rate  is  18  to 
20  cents  an  hour. 

A  teamster  reaches  his  stable  between  6  and  6.30  A.M. 
He  quits  at  5  in  the  afternoon.  He  must  clean  and  take 
care  of  his  horses.  Usually  he  gets  an  hour  for  dinner. 
On  the  average  he  works  ten  hours  a  day;  but  this  is 
not  fixed.  He  must  get  through  with  his  route.  If 
he  has  very  much  overtime  he  usually  receives  his  regu- 
lar rate  per  hour  for  it.  Sunday  and  holiday  work  are 
paid  for  at  the  same  rate. 

The  express  companies  pay  $55  and  $60  a  month. 
There  are  no  fixed  hours,  and  the  men  must  work  until 
all  deliveries  are  made.  They  get  every  other  Sunday 
off. 

To  cab  drivers  is  paid  $14  a  week  on  carriages  and  $15 
on  hearses.  They  must  clean  their  own  carriages  and 
work  Sundays,  holidays  and  any  hour  of  the  day  or 
night  without  extra  pay.  In  1904  their  wages  were  $9 
and  $10  a  week.  A  strike  in  1905  raised  the  wages  to  the 


WAGE-EARNERS   OF   PITTSBURGH         333 

present  rates.  The  bosses  signed  an  agreement  which 
was  renewed  in  1906.  The  following  year  they  refused 
to  sign,  but  wages  were  not  reduced.  The  steel  com- 
panies pay  their  teamsters  $2  a  day  of  ten  hours,  with 
overtime  and  Sunday  at  the  same  rate. 

Work  for  teamsters  was  plentiful  up  to  November, 
1907.  In  the  city  they  did  not  have  much  overtime, 
but  in  the  mills  overtime  added  a  considerable  amount 
to  the  drivers'  earnings.  One  man  got  nineteen  and  one- 
half  days'  pay  in  two  weeks.  He  averaged  right  along 
about  eighteen  days  at  every  fortnightly  pay  day. 

Five  years  ago  the  team  drivers  organized  a  union. 
A  year  later  the  ice  drivers  were  organized,  and  the  cab 
drivers  formed  a  union  three  or  four  months  after  them. 
The  three  locals  at  the  height  of  their  power  numbered 
about  3000  men,  but  the  recent  period  of  unemploy- 
ment has  practically  destroyed  the  organization. 

A  class  of  American  workmen,  akin  to  the  teamsters 
in  skill,  but  not  in  color,  are  the  marine  transport  work- 
ers. The  majority  of  them,  deck  hands  and  firemen, 
get  $50  a  month.  The  wages  of  mates  are  $70.  Hours 
are  twelve  on  the  double  crew  boats  and  somewhat 
more  than  that  on  boats  with  single  crews.  Double 
crews  are  six  hours  on  and  six  hours  off.  The  men  eat 
and  live  on  the  boats  and  work  seven  days  in  the  week. 
The  effect  is  demoralizing.  They  work  for  a  "  stake  " 
and  then  "  knock  off "  until  their  money  is  gone. 
Drunkenness  is  the  evil  among  them.  About  five 
hundred  river  men,  organized  in  a  local  branch  of  the 
International  'Longshoremen,  Marine  and  Transport 
Workers'  Association,  called  a  strike  in  January,  1907, 
demanding  $60  a  month  for  firemen  and  deck  hands 
and  $80  for  mates.  The  strike  was  lost,  and,  after 


334  LABOR  AND  ADMINISTRATION 

two  months,  the  men  went  back  to  work  at  the  old 
rates. 

So  far  I  have  been  discussing  the  transportation  men 
whose  work  is  closely  kin  to  primitive  methods  of  haul- 
age. These  lead  up  to  employments  which  have  come 
in  with  mechanical  horse  power.  A  motorman  or  con- 
ductor can  be  broken  in  almost  as  fast  as  a  teamster. 
Yet  the  wages  of  the  street  railway  men  are  twenty  to 
thirty  per  cent  higher  by  the  hour,  and  they  work  an 
hour  or  two  less  per  day.  They  have  more  responsi- 
bility and  are  fitter  and  steadier  men  than  the  teamsters, 
and  their  organization,  the  Amalgamated  Association 
of  Street  Railway  Employees,  is  a  strong  one  and  makes 
annual  agreements  with  the  Pittsburgh  Railways  Com- 
pany. The  union  has  almost  2700  members,  and 
includes,  with  exception  of  about  100  men,  all  the  motor- 
men  and  conductors  working  in  Pittsburgh.  At  present, 
this  is  the  third  largest  local  union  of  street  railway  em- 
ployees in  the  United  States,  and  the  wages  it  secures  by 
joint  agreement  are  the  highest  east  of  the  Mississippi. 
Prior  to  the  absorption  of  all  the  street  railway  lines 
by  the  Pittsburgh  Railways  Company  and  the  adoption 
of  the  secret  ballot  in  political  elections,  employment 
could  be  secured  through  political  leaders.  Now  the 
men  are  hired  as  they  come  according  to  fitness.  The 
agreement  fixes  the  wages  of  first-year  men  at  24^  cents, 
and  the  rate  advances  by  stages  until  after  three  years 
it  is  26^  cents  an  hour.  The  same  rates  are  paid  to 
motormen  and  conductors.  The  present  scale  repre- 
sents a  reduction  of  one-half  cent  per  hour  from  that  of 
the  preceding  year,  made  by  a  board  of  arbitration  in 
view  of  the  loss  in  earnings  since  the  panic.  On  April 
I,  1907,  the  Pittsburgh  Railways  Company  revised  its 


WAGE-EARNERS   OF  PITTSBURGH         335 

schedules  so  as  to  shorten  all  the  runs  and  equalize  the 
work.  The  longest  run  is  now  ten  hours  and  forty  min- 
utes. Formerly  it  was  eleven  hours.  Nine  or  ten 
hours  are  now  the  day's  work  for  most  street  railway 
employees.  This  represents  a  reduction  of  thirty  to 
forty  per  cent  in  the  hours  of  labor  since  1902.  Runs 
on  the  street  cars  are  continuous;  there  is  no  time  off 
for  meals.  Extra  pay  for  Sunday,  holidays  or  overtime 
is  not  allowed,  but  Sunday  runs  are  somewhat  shorter 
than  week-day  schedules.  Most  of  the  men  get  three 
days'  rest  per  month. 

To  handle  the  enormous  traffic  of  the  Pittsburgh 
District,  the  various  railways  employ  about  50,000 
people.  Of  these  the  Pennsylvania  lines  have  about 
35,000.  The  men  actually  employed  on  the  cars  and 
engines  are  classed  as  switchmen  (or  yardmen)  and  road- 
men. Yardmen  do  not  go  outside  of  the  switching 
yards.  They  receive  the  trains,  distribute  them  to  the 
various  tracks  for  unloading  and  make  up  trains  to  be 
given  over  to  the  road  men.  A  switching  crew  is  com- 
posed of  one  conductor  or  foreman,  three  brakemen  or 
helpers,  an  engineer  and  a  fireman.  They  work  in  two 
shifts  of  twelve  hours  each,  one  coming  on,  the  other 
off,  at  6.30  A.M.  ;  but  they  are  paid  for  eleven  hours, 
the  dinner  hour  being  deducted.  The  conductor  of  a 
switching  crew  gets  35  cents  an  hour  when  he  works  on 
the  day  shift  and  36  cents  at  night.  The  brakemen's 
rates  are  30  and  31  cents  an  hour.  On  switching 
engines,  to  the  engineer  is  paid  38.3  cents  an  hour  and  to 
the  fireman  23.7  cents.  Considering  the  requirements 
of  the  railway  service,  its  severity  and  danger,  as  well  as 
the  wages  and  hours,  the  condition  of  the  yardmen  is 
similar  to  that  of  the  roughers  and  catchers  in  the  rolling 


336  LABOR  AND   ADMINISTRATION 

mills.  They  are  much  the  same  kind  of  men,  American 
born,  of  strong  physique  and  endurance,  working  long 
hours  at  the  hardest  work. 

In  some  of  the  steel  mills  which  have  their  own  switch- 
ing yards,  the  night  crew  and  the  day  crew  change  shifts 
every  two  weeks.  This  was  before  the  enactment  of 
the  federal  law.  Once  a  month,  therefore,  these  switch- 
men were  confined  to  their  engines  or  cars  for  a  stretch 
of  twenty-four  hours.  In  the  railroad  yards,  day  crews 
usually  get  off  every  other  Sunday.  Night  crews  work 
one  Sunday  and  have  two  off.  Outside  of  emergencies 
the  hours  of  yardmen  are  regular.  Little  overtime  is 
made  after  twelve  hours.  In  case  of  wrecks,  however, 
crews  are  out  as  long  as  twenty-five,  thirty  and  even 
forty-eight  hours  without  rest. 

Roadmen,  on  the  other  hand,  regularly  have  much 
overtime.  While  the  time  tables  are  so  arranged  that 
the  hours  shall  approximate  twelve  or  thirteen  per  day, 
the  congestion  of  freight  often  compels  the  men  to  work 
much  longer.  A  man  starting  out  with  a  freight  train 
cannot  tell  when  he  will  get  back.  He  may  have  to  lie 
waiting  for  hours  at  a  siding.  Some  men  have  been  out 
thirty,  forty  and  even  sixty  hours  at  a  stretch,  prior 
to  the  operation  of  the  federal  law  restricting  the  hours. 
During  the  winter  months  eighteen  to  twenty  hours 
were  the  regular  thing  for  freight  crews.  The  time  record 
of  an  engineer  for  two  months  in  1907  was:  August, 
twenty-six  days,  391  hours ;  September,  twenty-five  days, 
386  hours ;  average  fifteen  hours  a  day.  Twice  during 
September  he  worked  forty  hours  at  one  turn.  He 
began  Saturday  noon  and  quit  Monday  morning. 

Passenger  crews  have  their  schedules  so  arranged 
that  on  through  passenger  trains  they  make  a  trip  of 


WAGE-EARNERS   OF  PITTSBURGH         337 

about  seven  and  one-half  hours  out  of  Pittsburgh.  They 
then  take  another  train  back  to  the  city.  Thus  they 
work  fifteen  consecutive  hours  for  which  they  get  two 
days7  pay.  Fifteen  round  trips  per  month  form  their 
regular  schedule.  Local  passenger  runs  are  so  arranged 
that  the  crews  may  be  back  in  Pittsburgh  in  thirteen 
hours. 

The  pay  for  men  on  the  road  is  fixed  by  a  combination 
of  hourly  rate  and  mileage  run.  To  a  through-freight 
engineer  is  paid  42^  cents  an  hour  on  an  assumed  run 
of  100  miles  in  ten  hours.  If  he  is  out  eleven  or  twelve 
hours,  he  gets  no  extra  pay.  But  if  he  is  out  thirteen 
hours  or  more,  he  receives  his  hourly  rate  for  the  excess 
beyond  twelve  hours.  Similarly,  the  local  freight 
engineer  gets  36  cents  an  hour,  the  firemen  23  and  28 
cents  according  to  the  type  of  engine,  the  conductors 
32  J  cents,  brakemen  24  cents,  flagmen  25  cents.  Pas- 
senger crews  earn  higher  rates. 

Some  of  the  railway  brotherhoods  have  strong  organ- 
izations in  the  district,  but  their  insurance  features  and 
the  difficulty  of  calling  a  strike  on  a  railroad  system  serve 
to  make  the  men  conservative  and  to  delay  improve- 
ments in  their  condition.  It  required  federal  legislation 
to  set  a  limit  of  sixteen  to  their  consecutive  hours  of 
labor.  The  Switchmen's  Union,  affiliated  with  the 
American  Federation  of  Labor,  —  as  the  railway  brother- 
hoods are  not,  —  has  shown  a  more  aggressive  spirit, 
and  has  incurred  the  hostility  of  the  railway  managers 
who  are  inclined  to  favor  the  rival  union,  the  Brother- 
hood of  Railway  Trainmen.  This  conflict  of  jurisdic- 
tion, especially  in  the  switchyards,  also  stands  in  the 
way  of  improvement. 

Indoor  Labor.  —  What  might  be  called  the  "  indoor 


338  LABOR  AND   ADMINISTRATION 

trades  "  comprise  such  a  variety  of  occupations  that 
there  is  no  special  significance  in  considering  them  to- 
gether, except  as  a  convenient  group  for  purposes  of 
presentation.  They  range  from  the  mercantile  employees, 
the  press  men  and  type  setters  of  the  printing  plants, 
the  bakers  and  the  brewers,  to  the  larger  and  more 
coherent  occupations  which  are  mechanical  in  an  old 
sturdy  sense,  machinists,  foundrymen,  blacksmiths  and 
the  like. 

At  the  farthest  extreme  from  the  railway  worker  is 
the  retail  clerk.  Formerly  the  clerks  began  at  6  or  7  in 
the  morning  and  quit  at  9  or  10  at  night.  Then  they 
organized  one  of  the  strongest  unions  of  their  class  in 
the  country,  affiliated  with  the  Knights  of  Labor. 
Though  the  union  has  disappeared,  the  improved  hours 
and  conditions  remain.  The  stores,  for  the  most  part, 
open  at  8  and  close  at  5.30,  except  Saturday  when  they 
close  at  9.  Legal  holidays  are  generally  observed.  Dur- 
ing the  last  year  a  movement  toward  the  old  conditions 
has  been  noticeable.  The  stores  were  open  on  Labor 
Day  and,  instead  of  closing  at  5  during  the  summer 
months,  as  was  the  custom,  many  kept  open  until  5.30. 

Among  the  bakery  workmen  unionism  also  is  weak, 
hardly  twenty  per  cent  of  them  being  organized.  But 
their  conditions  improved  considerably  during  the  recent 
period  of  prosperity,  a  change  due  to  the  fact  that  the 
supply  of  bakers  was  not  up  to  the  demand.  The  long 
hours  and  Sunday  work  had  kept  boys  out  of  the  trade. 
When  the  panic  with  its  consequent  unemployment  came, 
the  men  were  not  able  to  stave  off  a  reduction  of  $2  a 
week  for  all  hands.  Bakery  workmen  are  divided  into 
three  classes  according  to  their  work.  A  "  first  hand  " 
is  one  who  tends  the  oven.  "  Second  hands  "  work  at 


WAGE-EARNERS   OF   PITTSBURGH         339 

the  bench  and  are  sometimes  called  "  bench  hands." 
The  "  third  hand  "  is  the  helper.  Wages  since  the 
reduction  are  as  follows :  First  hand,  $16  a  week ;  second 
hand,  $12;  helper,  $11.  The  hours  of  work  for  most 
bakers  are  not  fixed.  Ordinarily  ten  or  eleven  hours  con- 
stitute a  day's  work,  except  on  Friday  when  the  usual 
time  is  thirteen  hours.  Work  begins  late  in  the  after- 
noon and  ends  in  the  morning.  The  longer  hours  on 
Friday  are  due  to  the  fact  that  no  work  is  done  on  Satur- 
day. 

The  printers  of  Pittsburgh  are  poorly  organized,  com- 
pared with  those  of  other  cities.  They  have  about 
400  members  in  the  union,  or  less  than  half  of  the  men 
working  at  the  trade.  Three  newspapers,  one  of  them 
German,  and  about  half  the  job  offices  work  under  agree- 
ments with  the  Typographical  Union.  The  minimum 
wage  is  $16  a  week,  in  the  union  as  well  as  in  the  non- 
union book  and  job  offices.  Union  shops,  however, 
work  eight  hours  while  the  others  have  a  nine-hour  day. 
For  night  shifts  the  rate  is  $19  a  week.  Time  and  one- 
half  time  is  paid  for  overtime  and  double  time  for  Sunday 
and  holiday  work. 

In  the  composing  rooms  of  the  daily  newspapers  all 
employees  work  on  the  hour  basis,  —  61  cents  an  hour 
being  the  rate  on  morning  newspapers  and  56  cents  on 
evening  papers.  In  the  union  shops  the  hours  are  seven 
a  day ;  the  other  shops  work  eight  hours.  Proofreaders 
have  an  eight-hour  day  and  receive  $22  a  week.  Work 
for  the  Pittsburgh  printers  was  very  abundant  up  to  a 
year  ago.  Job  printers  could  earn  annually  from  $800 
to  $1000  and  morning  newspaper  men  up  to  $1500. 

Machinists,  moulders,  pattern-makers,  boiler  makers, 
and  blacksmiths,  are  a  large  and  important  element  in 


340  LABOR  AND  ADMINISTRATION 

Pittsburgh's  industry.  Probably  15,000  machinists  are 
employed  in  the  county.  The  highest  skill  is  found 
among  the  5000  who  work  in  contract  or  jobbing  shops. 
These  are  all-round  mechanics;  they  may  have  a  dif- 
ferent kind  of  work  to  do  each  day  and  are  able  to  work 
from  blue  prints.  About  one-fourth  of  them  belong  to 
the  union.  There  are  perhaps  10,000  more  working  in 
"  specialized  shops."  Here  a  particular  product  is 
constantly  duplicated,  and  each  workman  is  confined  to 
making  just  one  part  of  a  machine.  These  specialized 
shops  are  entirely  unorganized.  Such  specialization 
in  the  machine  industry  has  been  one  of  the  causes  which 
has  weakened  the  machinists'  union  throughout  the 
country.  Formerly  the  Pittsburgh  branch  controlled 
nearly  all  the  machinists  in  the  district.  Then  it  was 
able  to  establish  the  nine-hour  day  (1890)  several  years 
before  the  general  agitation  for  the  nine-hour  day  began 
in  other  parts  of  the  country.  Now  the  union  in  Pitts- 
burgh confines  its  efforts  entirely  to  controlling  the 
contract  shops.  Even  in  these  it  is  being  beaten. 

Machinists  had  a  minimum  hourly  rate  of  30  cents  up 
to  1907.  To  many,  however,  more  than  40  cents  was 
paid.  On  April  i  of  that  year  the  union  called  a  strike 
for  a  4o-cent  minimum,  a  fifty-hour  week  and  an  in- 
crease of  ten  per  cent  for  those  who  were  earning  more 
than  the  new  minimum.  The  strike  was  lost.  The 
machinists'  union  lost  in  numbers  and  prestige,  and  the 
employers  were  able  to  make  the  open  shop  universal 
throughout  the  district.  No  trade  agreements  are  now 
made ;  the  fifty-four-hour  week  is  the  general  rule,  and 
there  is  no  minimum  wage.  Employers  pay  what  they 
consider  the  men  worth.  Rates  run  up  to  45  and  50 
cents  an  hour  according  to  the  skill  of  the  machinist 


WAGE-EARNERS   OF  PITTSBURGH         341 

and  the  size  of  the  tool  which  he  operates.  Few  men 
now  get  less  than  30  cents  an  hour,  and  most  machinists 
are  started  at  32  or  33  cents.  In  the  specialized  shops 
an  unskilled  man  starts  at  18  to  22  cents  and  works 
up  to  25  or  27  at  piece  or  premium  work  for  a  ten-hour 
day. 

About  4000  people  are  employed  at  moulding  in  the 
Pittsburgh  District.  Less  than  half  of  these  are  mem- 
bers of  the  International  Moulders'  Union.  The  six 
locals  have  together  some  1900  members  including 
300  core  makers.  Three-fourths  of  the  latter  are  or- 
ganized. Of  the  skilled  workers  only  about  300  are  out- 
side the  unions,  while  in  the  malleable  iron  works,  em- 
ploying about  1000  men  of  less  skill,  there  are  no  union 
men  whatever. 

To  moulders  was  generally  paid  $3. 50  per  day  of  nine 
hours  in  1906  and  1907.  On  March  i,  1908,  employers 
forced  a  reduction  of  25  cents  a  day,  and  the  union  was 
too  weak  to  withstand  it.  In  the  malleable  iron  works 
moulders  are  paid  by  the  piece.  Rates  are  so  arranged 
that  men  make  about  $3  in  nine  hours.  The  union  is 
opposed  to  the  piece-work  system,  but  in  these  shops  it 
cannot  enforce  the  day  system. 

The  higher  wages  of  the  pattern  makers,  —  generally 
$4  per  day,  —  may  be  explained  by  the  fact  that  there 
are  comparatively  few  engaged  in  the  trade ;  only  about 
450  in  the  district ;  and  the  union  has  two-thirds  of  these. 

The  boiler  makers  might  be  classed  among  either  the 
metal  or  the  building  trades.  They  work  in  shops,  do 
outside  work  on  buildings  and  work  for  the  railroads. 
Less  than  half  of  the  1500  boiler  makers  in  the  district 
are  organized.  When  employed  outside  they  have  the 
wages,  hours  and  conditions  general  in  the  building 


342  LABOR  AND  ADMINISTRATION 

trades.  Their  scale  is  $3.60  per  day  of  eight  hours,  or 
45  cents  an  hour.  Inside  men  have  the  nine-hour  day 
like  the  machinists  and  the  moulders  and  their  pay  is 
about  the  same,  —  $3.15  a  day  or  35  cents  an  hour.  In 
the  railroad  shops,  boiler  makers,  like  all  other  employees, 
have  less  favorable  conditions.  The  hours  are  ten  and 
wages  $3.30  a  day.  Four  or  six  hundred  men  who  work 
in  the  steel  mills  repairing  boilers  and  similar  work  are 
all  non-union.  They  get  $3  per  day  of  ten  hours. 

The  brewery  workers  are  the  only  workmen  whose 
entire  industry  is  thoroughly  organized,  and  this  favored 
position  they  owe  to  the  union  label  and  the  boycott. 
Every  brewery  in  the  Pittsburgh  District  works  under 
a  signed  agreement  with  the  Brewery  Workers'  Union 
and  every  agreement  provides  for  the  closed  shop. 
In  these  breweries  are  employed  about  1900  people. 
The  union  takes  all  employees  in  and  about  a  brewery 
regardless  of  their  occupation.  This  has  brought  it 
into  conflict  with  the  engineers'  and  coopers'  unions, 
but  in  these  jurisdictional  disputes  the  brewery  workmen 
have  come  out  victorious. 

The  effect  of  the  union  is  seen  in  the  wages,  hours  and 
conditions  of  labor  laid  down  in  the  agreements.  For 
all  men  who  work  in  the  brewery  proper  eight  hours 
constitute  a  day's  work,  and  their  wages  range  from  $16 
to  $20  a  week.  All  bottling  house  employees  working  for 
breweries  get  $2.50  per  day  of  eight  hours.  Work  is 
steady,  and  though  it  requires  but  half  the  time  to 
learn  the  trade,  the  journeyman  has  an  annual  income 
equal  to,  if  not  greater  than,  that  of  the  ordinary  build- 
ing trade  mechanic. 

Nine  hours  are  required  of  brewery  drivers  and  stable- 
men. Those  working  for  wholesale  liquor  dealers  have 


WAGE-EARNERS   OF  PITTSBURGH         343 

a  ten-hour  day.  The  wages  of  stable  men  are  $15  a  week ; 
drivers  receive  from  $16  to  $21.  Considering  the  reduc- 
tion of  hours,  the  union  has,  therefore,  increased  the 
wages  of  teamsters  fifty  to  sixty  per  cent  by  the  hour 
over  those  of  unorganized  teamsters.  Further,  engineers 
who  in  other  places  usually  work  twelve  hours,  have  the 
eight-hour  day  in  the  breweries. 

Building  Trades.  —  Turning  now  to  the  building  trades 
we  find  workmen  who  have  put  up  their  daily  rates  of 
wages  higher  than  those  of  any  others  in  the  district. 
Three  things  helped  them  to  do  this :  First  the  skill  of 
the  trades;  second  the  union,  and  third  the  seasonal 
character  of  the  work.  Rates  of  wages  are  highest  in 
those  trades  which  have  the  longest  periods  of  unem- 
ployment during  the  year  and  the  longest  period  of 
apprenticeship. 

The  wages  run  from  42 1  cents  an  hour  for  the  painters, 
up  to  65  cents  for  the  bricklayers.  Most  of  the  trades 
pay  50  cents  an  hour.  Next  in  number  come  those  in 
which  the  rate  is  56^  cents.  All  men  who  earn  45  cents 
an  hour  or  more,  with  the  exception  of  the  roofers,  have 
spent  at  least  four  years  in  learning  their  trade.  The 
slate  and  tile  roofers  have  an  apprenticeship  period  of 
only  three  years.  The  steam  fitters  and  the  plumbers 
require  five  years,  while  the  structural  iron  workers 
require  eighteen  months  of  actual  work  at  the  "  con- 
struction of  bridges,  viaducts,  building  or  other  construc- 
tional work,  either  of  wood  or  iron."  The  tile  layers' 
apprenticeship  period  is  only  two  years,  but  the  appren- 
tices are  taken  only  from  among  the  helpers,  who  may 
have  worked  a  good  many  years  at  not  much  over  half 
the  journeymen's  pay.  Hoisting  engineers  get  50  cents 
an  hour  and  have  no  specified  apprenticeship  rules. 


344  LABOR  AND   ADMINISTRATION 

But  the  state  requires  these  men  to  be  licensed,  and  a 
license  is  issued  only  after  an  examination  and  two  years' 
work  around  an  engine. 

The  bricklayers  get  the  highest  wages  per  hour  in  the 
building  trade,  —  65  cents.  But  they  have  a  longer 
period  of  unemployment  than  any  other  trade.  Seldom 
do  they  work  more  than  six  or  seven  months ;  and  -their 
yearly  earnings  average  not  much  over  $800  a  year. 

Next  to  the  bricklayers  the  plasterers  lose  the  most 
time.  They  work  perhaps  seven  or  eight  months  in  the 
year.  Fifty-six  and  a  quarter  cents  is  their  hourly  rate, 
but  the  annual  earnings  of  the  ordinary  plasterer  are 
only  about  $700. 

Whatever  the  rate  per  hour  may  be,  it  works  out  that 
the  annual  earnings  in  most  of  the  building  trades  run 
from  $700  to  $800.  In  those  trades  which  have  a  high 
daily  wage  and  steady  work  the  year  round,  such  as  the 
elevator  constructors  and  electricians,  there  is  a  scarcity 
of  workmen.  The  inside  wiremen  get  four  dollars  per 
day  of  eight  hours.  The  line  men  who  are  not  connected 
with  the  building  trades  recently  had  their  wages  re- 
duced 25  cents  an  hour.  Their  general  rate  is  now  $3 
for  a  nine-hour  day.  Those  working  for  the  city  get 
$90  a  month  and  they  work  only  eight  hours  a  day. 

All  together  about  15,000  workingmen  are  organized 
in  the  building  trades  unions.  This  represents  perhaps 
seventy-five  per  cent  of  all  the  men  working  at  these 
trades.  In  the  individual  unions,  the  proportion  of 
organized  to  unorganized  workmen  varies  greatly.  The 
plumbers,  bricklayers,  elevator  constructors  and  tile 
layers  have  over  ninety  per  cent  of  their  craftsmen  in 
the  unions.  Other  trades  run  from  fifty  per  cent  upward. 

There  is  seldom  much  difference  between  the  wages  of 


WAGE-EARNERS    OF   PITTSBURGH         345 

union  and  non-union  mechanics.  In  most  cases  the 
union  rate  is  also  paid  to  non-union  men.  Where  there 
is  a  difference  the  union  rate  is  usually  paid  to  some  men, 
while  to  others  less  is  paid.  In  a  union  shop  there  is 
usually  a  flat  rate  for  all ;  for,  although  the  union  fixes 
only  the  minimum  wage,  employers  are  not  inclined  to 
go  above  that. 

The  hours  of  labor  in  all  the  building  trades  are  eight 
per  day.  In  most  of  the  trades  this  was  established 
during  the  years  1900-1902.  The  bricklayers  and 
masons  secured  their  eight-hour  day  in  1896  and  the 
plumbers  in  1898.  Many  of  the  trades  now  have  a 
four-hour  day  on  Saturday  during  the  summer  months. 

Most  of  the  building  trade  mechanics  are  well  organ- 
ized in  trade  unions,  but  some  of  their  organizations  seem 
to  be  losing  ground.  Within  the  last  few  years  the 
employers  in  at  least  three  trades  have  established  the 
open  shop,  and  in  each  case  this  has  been  followed  by 
a  reduction  in  wages.  The  Pittsburgh  Local  of  the 
Bridge  and  Structural  Iron  Workers'  Union  has  been 
almost  disrupted  in  a  struggle  with  the  employers  or- 
ganized as  the  National  Erectors'  Association.  The 
latter  refused  to  pay  the  union  scale  of  56^  cents  an  hour. 
They  refuse  to  recognize  the  union  and  they  pay  50 
cents  per  hour  to  their  skilled  mechanics  and  less  to  the 
less  skilled.  Almost  all  master  plasterers  are  now  run- 
ning open  shops,  and  they  have  reduced  wages  from  $4.50 
to  $4.20  a  day.  The  carpenters'  union  is  unable  to  main- 
tain its  scale  of  50  cents  an  hour,  and  the  master  builders 
pay  anywhere  from  43!  to  50  cents.  In  several  other 
trades  the  employers  and  the  union  have  been  fighting 
over  the  closed  shop  and  scales  of  wages.  In  this  struggle 
the  employers  have  been  aided  very  much  by  the  recent 


346  LABOR  AND  ADMINISTRATION 

panic,  which  threw  many  men  out  of  work  and  weakened 
the  unions. 

So  long  as  the  workmen's  organizations  were  strong, 
they  secured  signed  agreements  from  the  employers. 
Now,  however,  most  of  the  trades  work  without  agree- 
ments, and  the  union  officials  claim  to  be  opposed  to 
agreements.  It  is  noticeable,  however,  that  unions  with- 
out agreements  are  with  difficulty  maintaining  their 
wage  scales,  while  the  plumbers  and  the  elevator  con- 
structors, who  have  signed  agreements,  have  been  secure 
in  their  union  wages  even  through  the  panic. 

Mine  Workers  and  Steel  Workers.  —  Finally,  we 
come  to  the  two  industries  employing  the  largest  num- 
ber of  men  in  Allegheny  county,  coal  mines  and  steel 
mills.  There  are  probably  20,000  mine  workers  in  the 
county  and  70,000  steel  workers.  In  some  cases,  the 
mines  are  owned  by  the  steel  corporations.  The  nation- 
alities of  the  two  sets  of  men  are  quite  similar,  with 
their  large  proportion  of  unskilled  and  semi-skilled  Slavs 
and  their  smaller  proportion  of  skilled  Americans  and 
English-speaking  nationalities.  The  hours  of  labor  in  the 
mines  are  eight  per  day  without  Sunday  work,  as  against 
twelve  in  the  mills  with  considerable  Sunday  work. 
The  wages  paid  to  the  common  laborer  underground  at 
the  coal  mines  are  $2.36  per  day  of  eight  hours,  while 
the  wages  paid  to  the  same  class  of  Slavs  at  the  Pitts- 
burgh mills  are  $1.80  for  twelve  hours,  and  in  the  other 
mill  towns  $1.98  for  twelve  hours.  Measured  by  the 
hour,  to  the  Slavs  employed  by  the  same  company  are 
paid  90  to  100  per  cent  more  as  mine  workers  than  as 
steel  workers. 

Again,  the  "  loaders,"  who  follow  the  undercutting 
machines  in  the  mines,  and  who  are  practically  common 


WAGE-EARNERS  OF  PITTSBURGH         347 

laborers  paid  by  the  ton  instead  of  by  the  day,  earn  about 
$2.40  to  $3  for  eight  hours,  while  the  metal -wheelers 
and  cinder-pitmen,  doing  similar  heavy  work  in  the  mills 
and  paid  by  the  ton,  earn  $2.28  to  $2.41  for  twelve  hours. 
The  miner  earns  30  to  37!  cents  an  hour  and  the  steel 
worker  19  to  20. 

When  we  come  to  the  highest  job,  there  is  no  position 
in  the  mine  to  be  compared  with  the  roller  on  a  bar  and 
guide  mill  or  on  a  plate  or  structural  mill.  The  bar  and 
guide  mill  rollers  earn  $ioto$i6a  day  of  twelve  hours, 
and  the  plate  and  structural  mill  rollers  earn  $7  or  $8  a 
day.  But  these  men,  though  usually  spoken  of  as  work- 
men, are  really  foremen  instead  of  workmen,  because 
they  oversee  the  work  rather  than  do  it,  and  the  company 
hires  and  discharges  the  crew  on  their  recommendation. 
The  blooming-mill  roller  is  different.  He  actually  works 
the  levers  himself,  and  to  him  may  be  compared  the 
electrical  undercutter,  who  operates  the  machine  that 
undercuts  the  coal.  The  undercutter  earns  $3.25  to  $5 
a  day  of  eight  hours,  and  the  blooming-mill  roller  an 
average  of  $6.25  for  twelve  hours.  The  miner  earns 
40  to  65  cents  an  hour  and  the  blooming-mill  roller 
about  50. 

In  another  respect,  the  mine-worker's  position  is 
superior.  The  houses  in  which  he  lives,  many  of  them 
belonging  to  the  company,  are  quite  convenient,  with 
open  spaces,  and  the  rentals  paid  are  about  $2  per  room 
against  $4  paid  by  the  mill  worker.  Taking  everything 
into  account,  —  wages,  hours,  leisure,  cost  of  living, 
conditions  of  work,  —  I  should  say  that  common  laborers 
employed  by  the  steel  companies  in  their  mines  are 
fifty  to  ninety  per  cent  better  off  than  the  same  grade 
of  laborers  employed  at  their  mills  and  furnaces ;  that 


348  LABOR  AND   ADMINISTRATION 

semi-skilled  laborers  employed  at  piece  rates  are  forty 
to  fifty  per  cent  better  off  in  the  mines ;  and  that  the 
highest  paid  laborers,  the  steel  roller  and  the  mine 
worker,  are  about  on  a  footing. 

In  1897  the  conditions  in  the  mines  were  similar  to 
those  in  the  mills.  The  day  laborer  received  $1.35  to 
$1.50  for  ten  hours.  It  was  in  that  year  that  the  long 
strike  of  coal  miners  throughout  the  interstate  field  took 
place,  with  the  result  that  for  the  past  ten  years  wages, 
hours  and  conditions  have  been  established  by  agree- 
ment between  the  United  Mine  Workers  of  America  and 
the  Coal  Operators'  Associations.  Under  these  agree- 
ments, the  conditions  of  the  poorest  paid  laborers  have 
been  improved  one  hundred  per  cent,  while  their  fellow 
workers  in  steel  have  improved  perhaps  twenty  per  cent. 

The  fate  of  unionism  in  the  two  industries  is  interest- 
ing and  enlightening.  Prior  to  the  Homestead  strike 
of  1892,  the  steel  industry  was  dominated  by  the  Amal- 
gamated Association  of  Iron,  Steel  and  Tin  Workers. 
There  were  two  defects  in  this  organization.  It  included 
only  the  skilled  or  semi-skilled  and  high-priced  workers, 
and  it  had  no  effective  discipline  over  its  local  unions. 
The  situation  was  such  that  the  manufacturer  was  handi- 
capped by  arbitrary  restrictions  which  the  national 
officers  of  the  union  deprecated,  but  could  not  correct, 
while  the  common  laborer  was  not  benefited  or  was  even 
deteriorated.  For  the  sake  of  both  the  manufacturer 
and  the  laborer,  the  union,  which  had  overreached  itself 
and  was  headstrong  in  its  power,  had  to  be  whipped  and 
thrown  out.  Since  that  time  the  manufacturers  have 
gone  to  as  mad  an  extreme  in  bearing  down  on  their 
employees  as  the  employees  had  previously  gone  in 
throttling  the  employer. 


WAGE-EARNERS   OF   PITTSBURGH         349 

Contrast  this  with  the  history  of  the  mine  workers, 
a  body  of  men  of  the  same  general  intelligence  as  the 
steel  workers.  With  a  national  union  able  and  willing 
to  discipline  its  local  unions,  the  leading  coal  operators 
assert  that  they  can  carry  on  their  business  to  better 
advantage  with  the  union  than  without.  If  there  were 
no  union,  they  would  be  menaced  by  petty  strikes  when- 
ever a  few  hot-heads  stirred  up  trouble,  and  at  times 
when  the  operator  might  be  tied  up  with  contracts  to 
deliver  coal.  But  under  the  annual  agreements  with  the 
union,  the  operators  are  safe  in  making  long  contracts, 
and  they  can  conduct  their  business  on  even  a  closer 
calculation  for  labor  than  for  materials  whose  prices  and 
supplies  fluctuate.  Furthermore,  this  union,  taking  into 
its  membership  the  entire  body  of  workers,  has  been  a 
greater  benefit  to  the  mass  of  unskilled  labor  than  to  the 
few  who  are  highly  skilled. 


CHAPTER  XVIII 

TARIFF   AND   LABOR1 

FOR  nearly  seventy  years  the  effective  arguments  that 
have  sustained  the  protective  tariff  have  been  the  home 
market  for  farmers  and  a  high  standard  of  living  for 
wage-earners.  The  first  depends  on  the  second,  for 
without  a  purchasing  power  of  American  labor  greater 
than  that  of  foreign  labor  the  home  market  is  not  much 
better  than  the  foreign  market.  The  standard  of  living 
is  the  really  enduring  justification  of  the  protective  tariff. 
The  tariff  prevents  the  competition  of  foreign  low-stand- 
ard labor  and  draws  a  protective  circle  within  which 
American  labor  may  gradually  work  out  its  own  higher 
standards. 

It  is  an  important  fact  that  the  principal  leaders  and 
advocates  who  framed  the  pauper  labor  argument  two 
or  three  generations  ago,  and  who  won  its  acceptance  by 
the  country,  did  not  believe  that  the  tariff  alone  would 
bring  about  a  high  standard  of  living.  They  looked 
upon  the  tariff  merely  as  defensive.  It  needed  to  be 
supplemented  by  positive  efforts,  by  voluntary  organi- 
zations, by  legislation,  within  this  country.  In  fact, 
the  tariff  was  to  them  simply  the  means  by  which  these 
domestic  efforts  could  be  guaranteed  a  free  field  for 
successful  experiment  and  adoption.  Matthew  Carey, 
from  1820  to  1840,  did  more  than  any  other  American 

1  Annals  of  American  Academy  of  Political  and  Social  Science ,  Sep- 
tember, 1908,  pp.  209-213. 

35° 


TARIFF  AND   LABOR  351 

to  establish  the  tariff  on  a  protective  basis  in  the  interests 
of  labor.  His  indefatigable  investigations  furnished  the 
arguments  for  petitions  which  manufacturers  sent  to 
Congress;  for  reports  of  Congressional  committees;  for 
speeches  of  Congressmen;  and  he,  more  than  any  one 
else,  changed  the  tariff  argument  from  protection  of 
capital  to  protection  of  labor.  Yet  Matthew  Carey, 
although  an  employer,  was  prominent  in  the  labor  agi- 
tation of  the  'thirties  and  in  his  support  of  the  labor 
organizations  of  that  period.  He  aided  and  defended 
their  strikes  and  brought  down  upon  himself  the  blows 
of  the  free-trade  organs,  which  rightly  identified  his 
protectionism  with  his  trade-unionism. 

Following  him  came  Horace  Greeley,  who  did  for  the 
people  what  Carey  had  done  for  the  politicians.  He 
converted  them  to  protection  by  the  home-market  and 
the  standard-of-living  arguments.  Yet  there  was  no 
man  of  national  fame  in  his  day  who  did  as  much  effective 
work  for  trade-unionism  and  even  socialism  as  Horace 
Greeley.  He  endorsed  the  industrial  congresses  to 
which  delegates  came  from  the  labor  unions,  the  land 
reformers,  from  the  Fourierite,  and  other  socialistic 
societies.  He  opened  the  Tribune  to  these  radicals  and 
avowed  himself  for  socialism  at  the  time  when  he  was 
also  powerfully  supporting  protection.  Indeed,  he 
claimed  that  protection  was  necessary  to  enable  socialism 
to  work  itself  out  to  a  successful  issue  free  from  the 
destructive  competition  of  pauper  labor. 

When  we  come  to  the  period  after  the  war,  Congress- 
man Kelley,  of  Pennsylvania,  so  persistent  and  able  a 
champion  of  protection  as  to  be  known  to  the  nation  as 
"  pig-iron  Kelley,"  often  asserted,  as  I  have  been  told 
by  his  daughter,  Mrs.  Florence  Kelley,  that  the  work  of 


352  LABOR  AND  ADMINISTRATION 

his  generation  must  be  to  establish  American  industry, 
the  work  of  the  next  generation  would  be  to  diffuse  its 
benefits. 

It  is  this  hope  of  Congressman  Kelley  which  I  believe 
points  toward  the  duty  of  the  present  day  in  the  revision 
of  the  tariff.  The  socialism  of  Horace  Greeley  has  long 
since  been  proved  visionary.  The  trade-unionism  of 
Carey  and  Greeley  has  been  proved  ineffective  in  the 
very  industries  where  the  tariff  is  most  protective.  In 
Greeley's  and  Kelley's  time  the  iron  and  steel  industry 
seemed  to  be  firmly  established  on  a  system  of  joint  trade 
agreements  of  capital  and  labor,  but,  since  the  Home- 
stead strike,  the  once  powerful  trade  union  of  that  in- 
dustry has  dwindled  to  a  remnant.  The  hours  of  labor 
for  men  on  shifts  have  been  increased  almost  uniformly 
to  twelve  per  day;  night  work  and  Sunday  work  have 
been  extended  wherever  possible;  twenty-four  hours' 
consecutive  work  on  alternate  Sundays  in  order  to  change 
the  night  and  day  shifts  has  become  necessary  for  many 
employees ;  while  speeding  up  to  the  limit  of  endurance 
and  cutting  piece  rates  with  increase  of  speed  have  been 
reduced  to  a  science.  The  glass  industry,  too,  is  marked 
by  the  decline  of  unionism  in  certain  branches,  and  even 
with  the  aid  of  unionism  it  is  notorious  for  the  exploita- 
tion of  child  labor.  In  the  textile  industry  child  and 
woman  labor,  long  hours  and  interstate  competition, 
have  defied  the  loudest  agitation  and  have  kept  the 
wages  and  conditions  at  a  point  actually  inferior  in 
places  to  those  of  its  free-trade  competitor,  England. 
In  other  protected  industries  unionism  is  making  a 
retreating  fight,  and  I  do  not  see  how  it  is  possible  in 
those  which  have  reached  the  stage  of  a  trust  for  union- 
ism to  recover  its  ground.  Labor  cannot  concentrate 


TARIFF  AND    LABOR  353 

as  capital  does.  It  is  among  the  industries  and  laborers 
not  directly  protected  by  the  tariff,  like  the  building 
trades,  the  railroads,  the  'longshoremen  of  the  lakes, 
that  unionism  has  its  principal  strength.  In  all  indus- 
tries its  influence  is  partial,  and  the  great  majority  of 
the  workers  are  outside  its  ranks.  If  their  standards 
of  living  are  to  improve  under  the  protecting  shield  of 
the  tariff,  the  improvement  must  come  through  the  aid 
of  legislation. 

We  need  scarcely  stop  to  maintain  the  futility  of  state 
legislation  in  protecting  labor  in  .the  tariff -protected 
industries.  If  the  industry  is  competitive,  the  more 
advanced  states  like  Massachusetts  cannot  afford  to 
handicap  too  greatly  their  own  manufacturers.  If  the 
industry  is  "  trustified,"  the  trust  can  shut  down  its 
factories  in  an  advanced  state  and  throw  its  orders  to  its 
factories  in  a  backward  state,  like  Pennsylvania.  The 
tactics  that  defeat  unionism  are  those  that  defeat  state 
legislation. 

As  regards  federal  legislation  there  are  serious  questions 
of  constitutionality  and  interference  with  state  prerog- 
atives. These  have  come  to  the  front  in  the  discussion 
that  followed  the  Beveridge  child  labor  bill  and  in  the 
decision  of  the  National  Child  Labor  Committee  to 
withdraw  from  that  line  of  attack.  It  is  doubtful 
whether  such  legislation  can  be  brought  in  under  the 
subterfuge  of  interstate  commerce,  or  even  under  the 
"  general  welfare  "  clause.  But  more  to  the  point  is  the 
fact  that  it  is  not  based  on  the  real  consideration  which 
the  federal  government  offers  to  employers  of  labor  as 
compensation  for  the  expense  which  labor  legislation 
imposes.  This  is  the  protective  tariff.  In  this  field 
questions  of  constitutionality  have  already  been  settled. 

2A 


354  LABOR  AND  ADMINISTRATION 

Congress  may  impose  a  tariff  for  protection  as  well  as 
revenue.  It  may  select  the  industries  and  articles  to  be 
taxed  and  determine  the  rate  of  import  duty.  Congress 
is  also  supreme  in  the  matter  of  internal  revenue  taxes. 
It  may  impose  such  taxes  for  regulation  as  well  as  rev- 
enue. It  coupled  the  National  Bank  act  with  a  prohibi- 
tive tax  of  10  per  cent  on  state  bank-notes.  It  has  placed 
a  heavy  tax  on  colored  oleomargarine  in  competition 
with  dairy  butter.  In  the  field  of  customs  and  internal 
revenue  taxation  Congress  "  is  supreme  in  its  action. 
No  power  of  supervision  or  control  is  lodged  in  either  of 
the  other  departments  of  the  government."  1  With  this 
unquestioned  control  of  the  taxing  power,  the  tariff 
can  be  made  to  pass  over  a  share  of  its  benefits  to  the 
wage-earners  for  whom  it  is  intended.  The  method  is 
merely  a  question  of  the  technical  drafting  of  the  law, 
and  not  any  innovation  on  the  principles  of  legislation 
nor  infringement  on  constitutional  boundaries. 

A  feasible  method  has  been  suggested  by  the  new 
Commonwealth  of  Australia  in  the  taxation  of  agricul- 
tural machinery.  The  so-called  "  excise  tariff  "  of  1906 
was  adopted  on  the  same  day  as  the  "  customs  tariff." 
The  customs  tariff  act  imposes  a  schedule  of  duties  on 
imported  goods,  and  the  excise  law  (i.e.  internal  rev- 
enue) imposes  a  schedule  of  one-half  those  rates  on  the 
same  goods  when  manufactured  at  home.  But  it  is 
provided  that  in  certain  cases  the  excise  duty  shall  not 
apply.  These  are  establishments  where  the  "  condi- 
tions as  to  the  remuneration  of  labor  "  in  the  manufac- 
ture of  the  home  product  (a)  "  are  declared  by  resolu- 
tion by  both  Houses  of  Parliament  to  be  fair  and  reason- 
able " ;  (6)  are  in  accordance  with  an  arbitration  award ; 
17  Wall.  433;  195  U.S.  57- 


TARIFF  AND   LABOR  355 

or  (c)  a  trade  agreement  of  employers  and  trade  union 
as  provided  in  the  conciliation  and  arbitration  act  of 
1904;  or  (d)  are  declared  fair  and  reasonable  after  a 
hearing  by  a  judge  of  the  supreme  court  of  a  state  or  his 
referee.  The  administrative  details  are  of  course  unes- 
sential. The  essential  feature  of  the  Australian  arrange- 
ment is  an  internal  revenue  duty  at  a  lower  rate  than  the 
customs  duty  on  the  competing  article,  and  the  remis- 
sion of  that  duty  if  the  home  manufacturer,  on  whom  is 
the  burden  of  proof,  can  show  that  his  employees  ac- 
tually receive  the  benefits  intended  by  the  protective 
tariff. 

I  do  not  overlook  the  fact  that  a  policy  of  this  kind 
requires  administrative  machinery  and  scientific  investi- 
gation. But  this  should  be  required  under  any  kind  of 
tariff  revision.  The  tariff  should  not  be  revised  or  re- 
duced except  on  the  basis  of  cost  of  production  in  this 
country  and  foreign  countries.  This  should  include, 
first  of  all,  the  comparative  cost  of  labor.  I  believe  all 
tariff  revisionists,  as  distinguished  from  free  traders, 
agree  to  this,  in  order  that  the  tariff  may  be  retained 
ample  enough  to  cover  the  higher  costs  of  labor  in  this 
country.  But  there  is  a  menace  imminent  even  in  such 
an  investigation  at  the  present  time,  because  it  assumes 
that  revision  will  be  made  on  the  basis  of  the  existing 
long  hours,  low  wages  and  child  and  woman  labor  of 
many  protected  industries.  The  actual  cost  of  labor 
is  lower  than  it  would  be  if  the  hours,  wages  and  con- 
ditions were  fair  and  reasonable.  The  people  of  this 
country  will  gladly  support  a  tariff  high  enough  to  pay, 
not  merely  the  existing  wages,  but  better  and  even  ideal 
wages.  They  do  not  ask  that  the  tariff  be  reduced  to 
the  present  labor  cost.  In  some  cases,  like  pig  iron,  that 


356  LABOR  AND  ADMINISTRATION 

cost  is  probably  less  than  it  is  in  England,  but  in  England 
the  blast  furnace  workers  are  on  the  eight-hour  day, 
while  here  their  day  is  twelve  hours,  seven  days  a  week. 
The  people  willingly  protect  labor,  but  they  would  like 
to  see  the  tariff  actually  passed  along  to  the  wage-earner. 
If,  therefore,  a  tariff  commission  investigates  the  com- 
parative cost  of  labor  in  this  and  competing  countries, 
it  should  inquire  whether  the  wages  and  hours  are 
actually  reasonable,  and  what  would  be  the  cost  if  they 
were  made  reasonable.  It  is  on  this  ideal  basis  and  not 
the  actual  basis  that  the  tariff  should  be  revised.  If 
this  is  done,  then  the  only  serious  difficulty  of  the  plan, 
that  of  investigation,  is  already  provided  for.  Such  a 
tariff  commission  would  necessarily  be  a  permanent  one. 
A  permanent  bureau  of  this  kind  would  receive  general 
instructions  from  Congress  as  to  what,  from  the  stand- 
point of  a  reasonable  American  standard  of  life,  should 
be  the  condition  of  labor.  This  might  provide  for  all 
workers  at  least  fifty-two  full  days  of  rest  each  year. 
It  might  provide  that  all  continuous  operations  should 
be  divided  into  three  shifts  of  eight  hours  instead  of 
two  shifts  of  twelve  hours.  It  might  provide  the  eight- 
hour  day  in  non-continuous  operations  for  women 
workers  and  possibly  for  men.  It  might  set  the  minimum 
age  of  child  labor  at  fourteen.  Other  provisions,  such 
as  minimum  rate  of  pay,  might  be  more  general  and 
be  left  to  the  commission  under  general  instructions  to 
ascertain  what  is  reasonable  under  the  conditions.  If 
upon  investigation  and  inspection  the  bureau  or  com- 
mission finds  that  a  given  manufacturer  is  granting  to 
his  employees  these  reasonable  conditions,  a  certificate 
to  that  effect  would  be  the  warrant  of  the  internal 
revenue  commissioner  to  remit  the  internal  revenue 


TARIFF  AND   LABOR  357 

tax.  All  the  machinery  for  imposing  such  a  dis- 
criminating tax  is  already  in  existence  in  the  adminis- 
tration of  the  oleomargarine  tax  which  imposes  a  tax 
of  ten  cents  per  pound  on  artificially  colored  oleomar- 
garine and  one-fourth  of  one  cent  per  pound  on  uncolored 
oleomargarine.  This  tax  and  its  administrative  ma- 
chinery have  been  sustained  by  the  Supreme  Court  of 
the  United  States  as  being  not  in  contravention  of  the 
Constitution,1  although  the  similar  tax  in  Australia  was 
held  unconstitutional.  The  only  additional  machinery 
required  is  that  which  is  already  widely  proposed  in  the 
form  of  a  permanent  tariff  commission.  Such  a  com- 
mission, I  believe,  is  favored  by  the  National  Associa- 
tion of  Manufacturers,  and  their  bill  only  needs  the  addi- 
tion of  a  clause  giving  the  commission  power  to  issue 
and  revoke  these  certificates  of  character,  in  order  to 
make  it  an  effective  instrument  of  labor  protection.  This 
would,  of  course,  require  a  force  of  inspectors  or  agents 
and  considerable  expense,  but  the  expense  would  be  met 
by  the  added  revenue. 

[The  discriminatory  an ti -phosphorus-match  law,  in  effect  July  i, 
1913,  is  the  first  application  of  the  foregoing  principle.  Its  significance 
is  the  use  of  the  internal  revenue  taxing  power  to  do  for  labor  what  the 
same  power  had  previously  done  for  banking  and  farmers.  The  law  is  a 
singular  token  to  the  constructive  research  of  my  former  pupil,  John  B. 
Andrews,  now  secretary  of  the  American  Association  for  Labor  Legis- 
lation.] 

.  U.  S.,  195  U.  S.  27. 


CHAPTER  XIX 

THE  SCHOOLHOUSE   IN  A  STATE  SYSTEM  OF  EMPLOYMENT 


WHAT  is  an  employment  office  and  what  are  its  func- 
tions ? 

A  place  where  buyer  and  seller  of  labor  may  meet  with 
least  difficulty  and  least  loss  of  time. 

This  function  is  now  performed  by  private  agencies 
and  newspapers.  They  fail  of  their  complete  purpose 
because  there  are  many  of  them  and  each  is  small.  The 
more  places  to  look  for  work  the  more  likely  that  man 
and  job  will  miss  each  other.  "  Don't  fly  around  look- 
ing for  a  job/'  says  a  newspaper.  "  Advertise."  But 
without  one  central  agency,  workmen  must  do  this. 

The  function  of  an  employment  office  is  best  expressed 
by  the  British  term  "  Labor  Exchange."  Exchange 
implies  a  market.  It  is  an  organization  of  the  labor 
market,  just  as  the  stock  market,  the  cotton  market,  the 
wheat  market,  are  organized. 

Manless  Job  and  Jobless  Man 

Why  is  an  employment  office  needed?  Employers 
are  constantly  discharging  and  hiring  laborers.  Work- 
men are  constantly  looking  for  jobs.  One  firm  in  Mil- 
waukee hires  from  60  to  240  men  a  week.  About  10 

1  La  Follette's  Magazine,  Aug.,  1912.  This  plan  has  been  worked  out 
by  my  former  pupil,  William  M.  Leiserson,  now  State  Supervisor  of 
Employment  Offices  for  the  Industrial  Commission  of  Wisconsin. 

358 


EMPLOYMENT  OFFICES  359 

per  cent  of  all  those  employed  change  places  because  of 
seasonal  work.  Four  out  of  every  ten  workmen  have 
to  look  for  work  at  least  once  a  year.  There  is  need  of 
an  organized  market,  because  without  such  an  exchange 
each  factory  and  each  district  of  a  city  tends  to  become 
a  market.  Each  has  its  reserve  labor  force  ready  to  work 
when  needed.  Many  markets  tend  to  increase  the  num- 
ber of  unemployed.  Lack  of  organization  causes  malad- 
justment. "  Manless  job  and  jobless  man  "  don't  meet, 
and  maladjustment  of  two  kinds  occurs.  First,  is  an 
oversupply  of  labor  in  one  place  and  lack  of  labor  in 
another.  Second,  some  occupations,  particularly  those 
of  unskilled  laborers,  are  greatly  oversupplied,  while 
many  skilled  occupations  have  not  enough  men. 

The  Ideal  Exchange 

What  is  the  ideal  organization  of  the  labor  market? 
Ideal  organization  would  be  national.  One  unified  na- 
tional labor  exchange  would  reduce  idleness  by  having 
a  single  market  so  that  oversupply  anywhere  could  be 
shifted  to  meet  demand  anywhere  else.  At  present, 
each  manufacturer  and  each  district  is  interested  in 
having  idle  workmen  in  the  immediate  neighborhood 
ready  to  go  to  work  when  they  are  needed.  But  it  is 
impossible  to  get  national  action  at  once ;  we  must  begin 
with  state  action. 

What  is  the  ideal  labor  market  of  a  state  ? 

(a)  Free  employment  offices  maintained  by  the  state. 

(b)  Free    employment    offices    maintained    by    local 
committees. 

(c)  Private  agencies  regulated  by  state. 

(d)  Correspondents  in  various  cities  and  industries. 

(e)  Reports  from  all  to  a  central  clearing-house. 


360  LABOR   AND   ADMINISTRATION 

(/)    Periodical  bulletin  of  the  labor  market. 
What  is  the  ideal  for  a  city  ? 

(a)  Central  office  in  the  business  centre. 

(b)  Branches  in  various  residence  districts. 

The  School   as   a   Branch   of  the   Employment   Bureau 

If  each  schoolhouse  has  a  director  of  its  social  centre 
service,  he  could  be  supplied  with  blanks  from  the  main 
employment  office.  A  workman,  by  going  to  the  school 
nearest  his  house  to  register,  could  be  immediately  con- 
nected with  the  whole  organized  labor  market  of  the 
state.  The  fact  that  he  is  out  of  a  job  and  the  kind  of 
work  he  can  do  will  be  immediately  known  at  the  city 
exchange,  and  in  a  day  the  central  clearing-house  will 
know.  If  a  man  of  his  trade  qualifications  is  wanted 
anywhere  in  the  city,  the  director  of  the  social  centre  will 
be  able  to  inform  him  after  a  talk  with  the  central  office 
in  the  city.  If  there  is  a  place  for  him  anywhere  in  the 
state,  it  will  be  known  to  him  in  the  course  of  a  few  days. 
No  discouraging  tramping  of  city  streets,  no  spending 
of  precious  pennies  for  car  fare,  newspapers  or  as  fees 
to  private  agents. 

This  will  tend  to  remove  maladjustment  of  place. 
It  is  of  use  particularly  to  the  immigrant  and  the  ig- 
norant. It  would  tend  to  distribute  population  by 
removing  congestion  in  certain  places. 

The  Vital  Problem 

Maladjustment  of  occupation  belongs  to  the  voca- 
tional bureau.  The  school,  as  a  branch  of  the  children's 
department  of  the  employment  office,  will  tend  to  re- 
move this  kind  of  maladjustment.  British  figures  show 
that  while  about  75  per  cent  of  applications  for  work 


EMPLOYMENT  OFFICES  361 

cannot  be  filled,  40  per  cent  of  the  jobs  could  not  be 
filled.  How  to  direct  some  of  the  75  per  cent  excess  so 
as  to  reduce  the  40  per  cent  lack  is  the  problem  of  the 
school.  Records  of  children's  aptitudes  should  be  kept 
in  school.  Teachers  can  best  tell  what  the  child  is  good 
for.  The  children's  department  of  a  free  employment 
office  has  special  blanks  for  children.  These  can  be  filled 
out  in  the  schools  with  the  aid  and  advice  of  teachers. 
The  employment  office  has  the  best  records  of  desirable 
trades,  those  which  are  growing.  Children  are  thus 
directed  into  the  most  promising  occupations.  Voca- 
tional training  in  public  schools  and  trade  schools  needs 
employment  offices  to  connect  children  with  the  business 
world.  The  schoolhouse  as  a  branch  of  the  organized 
state  labor  market  meets  this  need.  Thus  the  free 
employment  office  connects  up  with  the  vocational 
bureau  and  its  special  juvenile  advisory  committee  of 
employers,  employees  and  educators  to  encourage  ap- 
prenticeship, to  visit  parents  and  child  and  to  encourage 
the  boy  to  stick  to  trades  and  not  to  jump  into  "  blind 
alley  "  employments. 

How  to  induce  school-teachers  and  principals  to  coop- 
erate in  this  great  agency,  is  a  matter  that  can  be 
worked  out  when  once  its  importance  is  understood. 
The  Wisconsin  Industrial  Commission  is  meeting  with 
success  in  enlisting  municipal  authorities  and  local 
associations  of  manufacturers  in  supporting  financially 
and  supervising  the  employment  offices.  It  has  arranged 
with  a  few  country  bankers  to  act  as  agents  for  their 
localities.  With  a  broadening  idea  of  the  school  as  a 
social  centre  and  the  employment  of  principals  who  are 
wide  awake  and  alive  to  their  social  opportunities,  the 
commission  could  enlist  them  as  a  part  in  a  comprehen- 


362  LABOR  AND   ADMINISTRATION 

sive  scheme  for  the  state.  Such  men  should,  of  course, 
receive  extra  compensation,  not  only  for  this,  but  also 
for  other  work  outside  the  usual  pedagogical  lines.  The 
policy  of  the  industrial  commission,  and  the  one  that  will 
make  local  cooperation  most  effective,  indicates  that 
these  local  expenses  should  be  met  by  the  local  authori- 
ties, while  the  state  meets  the  general  expenses  and  the 
salaries  of  those  in  the  larger  offices  who  are  required 
to  give  their  entire  time  to  the  work. 


CHAPTER  XX 

INDUSTRIAL  EDUCATION   IN   WISCONSIN1 

WHAT  is  the  part  that  industrial  education  should 
perform  in  preventing  vagrancy,  irregular  employment 
and  pauperism  ? 

Before  we  can  answer  the  question  we  need  to  know 
what  kind  of  industrial  education  we  mean,  and  what 
kind  of  industry  it  is  that  needs  this  education. 

If  we  want  to  see  the  industries  of  Wisconsin,  let  us 
begin,  not  at  the  factory  or  shop  or  farm,  but  at  the  Free 
Employment  office  in  Milwaukee.  Stand  for  an  hour 
in  that  office  and  see  the  hundreds  of  men  and  boys 
waiting  for  jobs  to  turn  up.  There  is  the  spot  in  the 
state  where  you  can  see  passing  before  you,  in  miniature, 
the  panorama  of  modern  industry.  For,  industry  is 
not  merely  the  machines  and  shops,  nor  even  the  com- 
modities turned  out  in  amazing  quantities,  but  it  is 
mainly  the  boys  and  girls  entering  the  shops  and  the 
men  and  women  coming  out.  These  are  the  commodi- 
ties that  the  state  is  interested  in.  These  are  the 
machines  that  the  state  must  depend  upon  for  its  future 
food,  clothing  and  shelter,  for  its  politics,  its  prosperity 
and  its  power  of  endurance. 

We  are  accustomed  to  measure  prosperity  by  the  mil- 
lions of  dollars'  worth  of  cheese  and  butter  and  machin- 
ery and  leather  put  out  and  placed  on  the  market. 

1  Address  at  the  Social  Service  Institute,  Milwaukee,  April,  1913,  on 
the  subject  of  Industrial  Education  and  Dependency. 

363 


364  LABOR  AND   ADMINISTRATION 

Let  us  measure  it  by  the  thousands  of  men  and  women 
turned  out  and  placed  upon  the  labor  market.  What 
shall  we  say  of  a  factory  that  hires  and  discharges  a 
thousand  men  and  boys  in  one  year  in  order  to  keep  up 
a  steady  force  of  three  hundred?  Modern  industry 
must  employ  a  hundred  and  fifty  to  five  hundred  men 
every  year  in  order  to  keep  a  hundred  positions  steadily 
filled.  Here  is  a  kind  of  raw  material  taken  in  every  day 
and  a  kind  of  half-finished  product  poured  out,  that 
means  more  for  the  state  of  Wisconsin  than  its  inflow 
of  pig  iron  and  its  outflow  of  machinery.  As  you  look 
at  the  panorama  passing  through  the  employment  office 
you  see  the  human  products  of  Wisconsin's  prosperity. 

You  are  astonished  at  seeing  the  crowds  of  boys  and 
young  men  —  the  army  of  the  semi-skilled.  You  offer 
them  a  position  at  a  dollar  or  a  dollar  and  a  quarter  a 
day,  where  they  can  learn  a  trade  or  get  promotion,  and 
they  laugh  at  you.  They  have  been  spoiled.  They 
could  earn  that  much  before  they  were  sixteen  years  old ! 
At  the  age  of  seventeen  or  eighteen  they  have  been  earn- 
ing eighteen  to  twenty  cents  an  hour  —  twice  as  much  as 
you  offer  them.  To  the  boy  of  sixteen,  twenty  cents  an 
hour,  at  a  two-months'  job,  looks  bigger  than  the  fifty 
cents  or  a  dollar  an  hour  and  steady  work  at  the  end  of 
a  ten-year  line  of  future  promotion.  He  has  suddenly 
found  himself  earning  more  than  his  immigrant  father. 

Why  is  it  that  these  boys  do  not  look  ahead?  Why 
do  they  not  know  that  twenty  cents  is  the  highest  they 
will  ever  earn  ?  That  they  will  scarcely  hold  such  a  job 
more  than  four  or  five  months?  That  ten  years  from 
now  they  will  be  loafing  in  the  back  part  of  the  employ- 
ment office  with  the  flotsam  and  jetsam  that  they 
already  see  behind  them,  vainly  waiting  for  a  twenty- 


INDUSTRIAL  EDUCATION  IN  WISCONSIN    365 

cent  job  of  two  or  three  days,  or  else  hopelessly  accepting, 
for  the  rest  of  their  lives,  an  old  man's  job  at  a  dollar 
or  so  a  day,  long  hours  and  Sundays  thrown  in  ? 

Let  us  see  where  they  got  their  notions  of  work  and 
wages.  At  sixteen  or  seventeen  they  are  put  to  work 
feeding  a  semi-automatic  machine.  In  two  months 
they  have  learned  the  job  and  got  the  speed.  Their 
wages  go  up  to  eighteen  or  twenty  cents  an  hour.  But 
the  work  is  monotonous  —  just  one  or  two  operations, 
hour  after  hour,  ten  hours  a  day,  sixty  hours  a  week. 
The  monotony  grows  —  gets  unendurable.  The  older 
man  at  the  machine  is  afraid  to  quit.  He  keeps  on  — 
his  mind  shrinks  —  he  never  thinks  of  his  work  unless 
something  goes  wrong  —  he  thinks  of  other  things  —  his 
childhood,  his  former  playmates  —  his  days  and  nights 
of  fun  and  wild  oats  —  anything  to  keep  his  mind  off 
from  the  deadly  monotony. 

But  the  boy  rebels.  He  must  get  a  move.  His 
foreman  will  not  change  him  to  a  different  machine  or  a 
different  foreman.  Other  boys  have  got  the  speed  there. 
The  foreman  must  have  output  —  he  puts  up  with  be- 
ginners and  learners  only  because  he  must.  The  boy 
quarrels  and  quits  in  a  huff;  gets  impudent  and  is 
"  fired."  He  hunts  another  shop  —  gets  on  another 
machine  or  a  similar  machine  under  different  surround- 
ings. After  a  while  he  has  learned  several  machines  by 
a  wandering  apprenticeship  through  several  shops. 

The  employer  storms.  Here  he  is  paying  eighteen 
to  twenty  cents  an  hour  for  work  that  takes  little  intel- 
ligence. Yet  he  cannot  keep  his  hands.  They  quit 
on  the  least  provocation.  They  are  conducting  a  con- 
tinuous, unorganized  strike.  When  they  get  too  speedy 
and  earn  too  much,  the  employer  cuts  their  piece-rate 


366  LABOR  AND   ADMINISTRATION 

prices  as  much  as  he  dares.  Their  high  wages  are  not 
due  to  their  skill  or  speed,  but  to  their  disgust.  The 
employer  ascribes  their  instability  and  impudence  to 
their  laziness,  intemperance,  vice.  He  compares  them 
with  himself  and  others  who,  by  hard  work,  low  pay  and 
thrift,  have  climbed  to  eminence.  He  disregards  the 
fact  that,  with  his  specialized  machinery,  he  does  not 
want  intelligence,  except  in  his  foremen  and  master 
mechanics;  that  if  the  machine  hand  stops  to  think 
about  his  work,  he  promptly  abhors  it;  that  he  sees 
nothing  in  it  for  him  but  the  twenty  cents  he  gets  for  it, 
and  the  cut  in  piece-rates  if  he  gets  more. 

Large  employers  have  begun  to  feel  the  pinch.  It 
comes  to  them  in  the  scarcity  of  all-round  mechanics 
and  intelligent  foremen.  They  need  a  certain  amount 
of  brains,  distributed  through  the  shop,  to  supervise  the 
machines  and  to  "  boss  "  the  machine  hands.  If  they 
can  build  up  a  skeleton  framework  of,  say,  a  hundred 
foremen,  superintendents,  skilled  mechanics  and  effi- 
ciency experts,  who  stay  with  the  establishment  perma- 
nently, then  they  are  independent  of  the  five  hundred 
machine  hands  and  common  laborers  that  pass  through 
their  shops  like  subconscious  machines.  Their  factories 
are  not  built  to  produce  intelligence.  So  in  the  past  ten 
or  fifteen  years  they  have  begun  to  create  positions  for 
apprentices. 

The  old  apprenticeship  system  went  to  pieces  with  the 
incoming  of  specialized  machines  and  machine  hands. 
The  former  apprentice  worked  with  hand  tools  and 
learned  all  parts  of  the  trade  by  imitating  the  journey- 
men. He  became  a  skilled  man  working  with  his  hands, 
rather  than  an  intelligent  one,  working  with  his  brains. 

But  the  modern  apprentice  works  with  machines.    The 


INDUSTRIAL  EDUCATION  IN  WISCONSIN    367 

machine  is  the  accumulated  intelligence  of  the  past, 
harnessed  up  to  belts  and  motors.  The  apprentice  now 
needs  intelligence  more  than  manual  skill.  How  shall 
he  get  it? 

In  the  first  place,  he  must  learn  to  operate  the  machine. 
But  he  must  not  be  kept  on  one  machine.  He  must 
pass  around  the  shop  and  learn  to  operate  all  the 
machines. 

So  far,  the  apprentice  is  merely  a  machine  hand.  His 
apprenticeship  differs  only  from  that  of  the  other 
machine  hands,  in  that  he  learns  the  different  machines 
in  the  same  shop,  while  they  learn  them  by  travelling 
from  shop  to  shop. 

But  there  is  a  difference.  You  can  measure  it  by  the 
rate  of  pay.  The  machine  hand  gets  eighteen  to  twenty 
cents  an  hour  on  piece-work  —  the  apprentice  gets  ten 
or  twelve  cents  an  hour  on  time-work.  He  is  virtually 
paying  the  employer  eight  or  ten  cents  an  hour  for  the 
opportunity  of  leaving  one  machine  as  soon  as  he  has 
learned  to  operate  it,  and  learning  to  operate  the  next 
machine.  A  boy  of  eighteen  years  of  age  at  ten  or  twelve 
cents  an  hour  is  prima  facie  an  apprentice,  although  he 
may  have  no  apprenticeship  contract. 

But  this  is  not  enough  for  modern  apprenticeship. 
The  machine  is  an  iron  brain.  It  is  built  on  theories  of 
mathematics  and  mechanics  that  have  accumulated 
since  the  time  of  Archimedes.  It  moves  by  the  genera- 
tion of  power  that  began  with  the  brain  of  Isaac  Watt, 
Michael  Faraday,  or  the  inventor  of  the  gas  engine. 
It  is  made  up  of  metals,  and  it  transforms  raw  material 
that  can  be  understood  only  by  a  glimpse  into  chemistry 
or  biology.  The  modern  factory  is  indeed  the  forces 
of  nature  obeying  the  stored-up  thought  of  man. 


368  LABOR  AND   ADMINISTRATION 

Consequently,  the  modern  apprentice,  if  he  becomes 
more  than  a  multiplied  machine-hand  or  an  imitative 
journeyman,  must  understand  the  machines  and  the 
forces  of  nature  that  he  is  charged  with  directing.  This 
does  not  mean  that  he  must  be  a  scientist,  engineer, 
chemist  or  biologist.  It  merely  means  that  he  must 
think  over  again  and  understand  the  principles  that 
philosophers,  scientists,  engineers  and  inventors  of  the 
past  have  embodied  in  the  workshop  of  the  present.  If 
he  is  rightly  instructed  in  shop  mathematics  and  me- 
chanical drawing,  he  is  really  thinking  out  for  himself,  the 
thoughts  that  go  back  to  Newton,  Watt  or  Faraday,  and 
applying  them  to  the  machines  and  forces  that  he  is 
pretending  to  manage.  If  he  studies  the  raw  material 
he  is  using,  and  compares  it  with  other  material,  he  is 
getting  into  such  sciences  as  chemistry,  biology  or  com- 
mercial geography. 

But  the  modern  factory  is  just  as  wonderful  in  its 
system  of  organization,  division  of  labor,  specialization 
and  management  as  it  is  in  its  mathematics  and  engineer- 
ing. Consequently,  in  the  third  place,  if  the  apprentice 
studies  different  plans  of  shop  organization,  book-keep- 
ing, cost-keeping,  efficiency,  labor  problems  and  so  on, 
he  is  thinking  out  the  elements  of  accounting,  govern- 
ment, political  economy  and  even  psychology,  as  applied 
to  the  business  of  which  he  is  a  part.  These  studies 
open  up  to  him  the  line  of  promotion  to  foreman,  su- 
perintendent, manager. 

It  is  this  kind  of  training  in  intelligence  and  in  learn- 
ing to  study  and  think,  that  the  shop  itself  does  not  give. 
Hence,  large  employers,  who  can  afford  it,  have  set  up 
apprenticeship  schools  in  their  establishments,  where 
the  apprentice  puts  in  part  time  along  with  his  shop  work. 


INDUSTRIAL   EDUCATION  IN  WISCONSIN    369 

These  schools,  with  their  mathematics,  designing,  busi- 
ness organization  and  other  studies,  are  the  brain- 
factories  of  modern  industry  which  produce  intelligence, 
while  the  shop  itself,  like  the  older  kind  of  apprentice- 
ship, turns  out  only  manual  dexterity. 

But  this  modern  apprenticeship  cannot  go  very  far. 
It  is  expensive.  Only  large  companies  can  afford  it. 
Even  the  large  companies  keep  it  down  to  narrow  limits. 
A  shop  of  5000  men  will  have  only  a  hundred  or  two 
hundred  apprentices.  Worst  of  all,  other  employers 
"  steal  "  the  apprentices,  and  the  company  finds  itself 
educating  mechanics  for  the  use  of  its  competitors. 
Further,  the  employer's  apprenticeship  system  really 
enlarges  the  evil  which  it  should  reduce.  It  develops 
the  intelligence  of  a  few,  and  makes  it  less  necessary  to 
develop  the  intelligence  of  the  great  mass  of  machine 
hands  and  common  laborers.  Instead  of  thousands  of  in- 
telligent boys  and  young  men  in  their  shops  from  whom  to 
select,  the  employers  are  compelled  to  resort  to  engineering 
colleges,  and  then  to  start  their  young  engineers  on  a 
course  of  shop-apprenticeship.  The  separation  of  brains 
from  hands  is  a  business  necessity.  We  must  look  else- 
where for  the  system  that  will  unite  intelligence  and  labor. 

The  common  schools  in  America  started  off  some  sixty 
or  seventy  years  ago  with  the  idea  of  making  the  com- 
mon laborer  and  the  workingman  an  intelligent  worker. 
There  had  been  plenty  of  private  schools  for  the  educa- 
tion of  boys  to  become  doctors,  lawyers,  preachers  and 
teachers,  but  there  was  little  or  nothing  for  the  working- 
man  except  charity  schools  or  pauper  schools. 

What  happened  to  the  common  schools,  however,  was 
not  the  education  of  labor  as  such,  but  the  instruction 

2B 


370  LABOR  AND   ADMINISTRATION 

of  labor  toward  the  learned  professions.  This  was  in- 
evitable, because  there  were  as  yet  no  teachers  except 
those  who  had  been  taught  in  the  learning  that  led  to  the 
professions.  Numbers  of  "  mechanics'  colleges,"  "  me- 
chanics' institutes,"  "  agricultural  colleges,"  and  so-called 
colleges  of  "  learning  and  labor  "  were  started  and  were 
expected  to  teach  the  boys  to  become  intelligent  farmers 
and  mechanics;  but  they  gradually  slipped  off  into 
experiment  stations,  engineering  colleges,  the  higher 
colleges  of  agriculture  or  the  usual  academic  colleges  of 
letters  and  arts.  Instead  of  turning  out  teachers  for 
the  common  schools,  they  turned  out  scientists,  engineers 
and  experts.  Instead  of  making  labor  intelligent  they 
added  a  number  of  scientific  professions  to  the  former 
number  of  learned  professions.  This,  also,  was  inevi- 
table and,  indeed,  advantageous,  for  such  professions  are 
needed.  But  it  did  not  solve  the  problem  of  how  to 
teach  the  millions  of  boys  who  must  work  with  their 
hands  for  a  living  also  to  work  with  their  brains  at  the 
same  time. 

This  problem  of  industry  and  education,  therefore, 
again  forced  itself  to  the  front.  Some  twenty  or  thirty 
years  ago  the  states  began  to  enforce  compulsory  at- 
tendance at  school  and  to  prohibit  child  labor  in  factories. 
But  compulsory  attendance  is  not  compulsory  education. 
Boys  and  girls  are  eager  to  get  to  work.  To  meet  this, 
a  wave  of  manual  training  passed  over  the  schools.  But 
manual  training  starts  from  the  standpoint  of  the 
professions.  It  is  a  good  thing  for  the  professional 
man  to  have  done  some  work  with  his  hands. 
A  system  of  education  that  leads  to  the  learned  and 
scientific  professions,  conducted  by  teachers  trained  to 
that  system,  makes  of  manual  training  a  branch  of 


INDUSTRIAL  EDUCATION  IN  WISCONSIN    371 

liberal  education  —  not  industrial  education.  No  wonder 
that  manual  training  has  found  its  place  in  the  high 
schools  that  lead  to  colleges  and  universities,  and  not 
much  in  the  grade  schools  that  stop  where  industry  begins. 

I  might  mention  other  efforts  that  have  been  made 
to  connect  up  industry  with  education.  A  half  century 
ago  John  Ruskin  and  William  Morris  revolted  against 
the  deadening  effects  of  modern  industry  on  the  worker. 
Theirs  was  the  artistic  and  romantic  point  of  view. 
They  went  back  to  the  time  of  small  industries,  when 
each  worker  made  a  complete  article  and  had  an  interest 
and  an  ambition  in  his  work.  From  Morris  has  come  the 
so-called  "  arts  and  crafts  "  movement.  This  movement 
really  accomplishes  the  object  intended.  It  makes  the 
worker  see  and  understand  both  the  beauty  and  the 
money  to  be  obtained  from  his  work.  But  it  reaches 
such  a  small  number  of  people,  and  is  so  remote  from  the 
great  current  of  factory  industry,  that  it  needs  only  to 
be  mentioned  to  show  its  inadequacy.  It  has  inspired 
a  few  maiden  ladies  of  Massachusetts,  or  a  few  moun- 
taineers of  North  Carolina,  to  restore  the  quaint  weaving 
and  needle-work  of  colonial  times.  But,  as  soon  as  they 
secure  a  nation-wide  market  for  their  artistic  product, 
then  it  pays  to  make  it  on  a  large  scale,  and  the  factory 
system  comes  in,  with  its  designers  and  artists  on  the  one 
hand,  separated  from  its  machine  hands  on  the  other. 
Just  as  modern  industry  has  no  need  of  intelligent  workers 
to  operate  its  machines,  so  it  has  no  need  of  artistic 
workers.  If  the  boy  and  the  girl  are  to  learn  how  to 
design  and  appreciate  a  beautiful  product,  they  must 
learn  it  outside  the  factory. 

So  it  is.     No  matter  from  what  standpoint  we  start, 
we  find  the  same  result.     If  we  start  from  the  industrial 


372  LABOR  AND   ADMINISTRATION 

side  we  find  the  overwhelming  pressure  of  modern  in- 
dustry toward  specialization.  This  separates  out  a  few 
with  the  intelligent  and  artistic  work,  and  leaves  the 
thousands  with  only  the  manual  and  monotonous 
work.  If  we  start  from  the  educational  side  we 
find  that  the  teachers,  also,  have  been  specialized 
in  the  learned,  scientific  or  artistic  professions.  This 
limits  their  instruction  to  the  benefit  of  the  few  whose 
work  is  to  be  intellectual  or  artistic,  and  neglects  the 
thousands  who  must  earn  their  living  by  manual  work. 

There  is  evidently  needed  something  that  will  unite 
the  factory  and  the  school,  that  will  bring  together  the 
employer  and  the  school-master.  Neither  is  competent 
to  handle  the  problem  by  himself.  When  the  employer 
starts  off  in  the  schooling  business,  he  gets  no  further  than 
the  trade  school.  He  thinks  first  of  all  of  the  dearth  of 
skilled  mechanics  for  his  shop,  or  of  the  short  supply 
of  skilful  cooks  and  domestic  servants  for  his  household. 
His  idea  of  industrial  education  is  the  training  of  car- 
penters, plumbers,  steam-fitters  and  the  other  unionized 
trades  that  have  not  yet  been  broken  up  by  the  factory 
system,  or  else  the  training  of  hired  girls  for  the  kitchen. 

On  the  other  hand,  when  the  schoolmaster  starts  off 
in  the  industrial  business,  his  idea  is  the  training  of  the 
hand  to  supplement  the  training  of  the  brain.  He  gets 
no  further  than  manual  training.  He  makes  each  boy 
take  a  course  in  carpentering,  or  drawing,  even  though 
the  boy  wants  to  be  a  grocery  boy,  a  book-keeper,  or  a 
salesman. 

The  state  of  Wisconsin,  at  last,  has  adopted  a  system 
of  continuation  schools  that  is  planned  to  remedy  these 
things;  first,  to  make  the  intellectual  and  artistic  side 
of  industry  reach  every  boy  and  girl,  instead  of  a  few 


INDUSTRIAL  EDUCATION  IN  WISCONSIN     373 

apprentices ;  and,  second,  to  make  the  employer  and  the 
schoolmaster  cooperate  with  and  supplement  each  other, 
instead  of  duplicating  and  controverting  each  other. 

The  great  danger  that  threatens  this  forward  attempt 
is  the  same  as  that  which  has  side-tracked  similar  at- 
tempts in  the  past;  namely,  the  lack  of  teachers  who 
have  had  a  thorough  acquaintance  in  the  shop  with  some 
industry  or  trade,  and  at  the  same  time  are  capable  of 
using  that  knowledge  to  teach  the  intellectual  and  artistic 
principles  that  the  boy  does  not  get  in  the  shop.  This 
is  the  one  great  and  pressing  problem  ahead  of  the  con- 
tinuation schools  in  this  state  —  how  to  get  and  keep 
the  right  kind  of  teachers.  Back  of  this  is  the  bigger 
question  —  how  to  know  the  kind  of  teachers  that  are 
needed.  If  boards  of  industrial  education  do  not  know 
the  kind  of  teachers  required  for  this  work,  they  are 
likely  to  get  teachers  who  know  only  how  to  lead  their 
boys  and  girls  along  the  lines  of  manual  training,  where 
they  simply  try  to  teach  what  the  boys  can  learn  just  as 
well  or  better  in  the  shops ;  or  else  they  get  teachers  who 
only  know  how  to  teach  a  trade,  just  as  the  old-style 
journeymen  taught  the  apprentice  to  imitate  himself. 

Let  us  imagine  these  two  kinds  of  teachers.  Picture  to 
yourself  a  school-teacher  who  starts  her  thirteen-year-old 
children  off  with  what  she  calls  the  "  principles  of  design." 
They  are,  first,  she  says,  "  Rhythm,"  which  she  defines 
as  "  joint  movement  or  action  ";  second,  "  Harmony," 
or  "  the  consistency  of  likeness,"  and  third,  "  Balance," 
or  "  that  repose  which  results  from  the  opposition  of 
attractions."  It  would  not  be  strange  if  the  children 
did  not  understand.  Such  a  teacher  is  what  we  call 
"  academic." 

On  the  other  hand,  picture  a  teacher  in  a  continuation 


374  LABOR   AND   ADMINISTRATION 

school  who  comes  to  his  superintendent  after  the  third 
day,  and  says  :  "  I  have  shown  the  boys  all  I  know  about 
wiping  joints,  fitting  pipes  and  using  tools  —  what  shall 
I  teach  them  next?  "  This  teacher  is  what  would  be 
called  "  practical." 

In  our  revolt  against  academic  teaching,  which  is 
merely  brains  without  experience,  we  are  in  danger  of 
going  to  the  other  "  practical  "  extreme,  which  is  experi- 
ence without  brains.  One  is  half-baked  philosophy  - 
the  other  is  rule-of- thumb.  One  extreme  is  the  academic 
or  normal  school  graduate  who  knows  only  the  intellectual 
forms  of  education,  and  does  not  know  by  experience 
the  shop  practice  that  those  forms  are  to  be  applied  to. 
The  other  extreme  is  the  mere  shop-man  or  mechanic, 
who  knows  how  to  do  a  thing  with  his  hands,  but  does 
not  know  anything  of  the  science,  philosophy  or  mathe- 
matics that  are  necessary  to  make  the  thing  an  intelligent 
process,  and  are  necessary  to  set  the  worker  to  thinking 
out  the  reasons  for  the  job  that  he  is  merely  imitating. 

The  one  is  the  type  that  leads  to  manual  training,  in 
order  to  supplement  academic  philosophy;  the  other 
that  leads  to  trade  schools,  in  order  to  supply  manual 
dexterity.  Neither  leads  to  that  combination  of  the 
shop  and  the  school  that  should  distinguish  the 
method  of  the  continuation  school.  A  continuation 
school  does  not  always  need  machinery  and  tools, 
like  a  manual  training  school  —  indeed,  the  great  con- 
tinuation schools  of  Magdeburg  and  Berlin  in  Germany 
have  no  machine  equipment  whatever.  It  is  the  mind, 
not  the  hand,  that  they  are  teaching.  The  hand  is  taught 
in  the  factory  —  the  mind  in  the  continuation  school. 

Far  more  important  than  the  machinery  and  tools  is 
the  supply  of  teachers.  The  danger  in  Wisconsin  grows 


INDUSTRIAL   EDUCATION   IN   WISCONSIN     375 

out  of  our  sudden  and  comprehensive  plan  of  stimulating 
industrial  education  without  securing  in  advance  the 
quality  of  teachers  required.  Every  town  that  starts 
a  school  and  gets  full  attendance  gets  thereby  a  share 
of  the  state  fund,  and  the  effort  in  some  of  the  towns  is 
directed  more  to  forcing  large  numbers  of  children  into 
the  schools  from  the  homes  as  well  as  the  factories,  in 
order  to  qualify  for  the  state  fund,  than  it  is  to  making 
sure  that  they  will  get  the  right  kind  of  instruction  after 
they  are  forced  in.  This  may  give  an  appearance  of 
success,  but,  if  it  is  success  based  on  the  police  power  of 
the  state  rather  than  the  useful  education  secured,  the 
success  will  only  be  temporary.  The  first  thing  is  to 
go  slow  on  numbers  and,  above  all  else,  get  teachers. 
Then  the  numbers  will  come.  We  are,  in  fact,  calling 
for  a  new  profession  in  teaching  —  the  profession  of  the 
practical  man  who  can  teach  the  theory  and  science  that 
underlie  his  practice.  We  are,  indeed,  already  well 
prepared  to  train  these  teachers,  provided  they  have  had 
the  shop  experience  that  is  first  in  order.  The  Stout 
Institute  at  Menomonie  is  recognized  the  country  over 
as  a  normal  school  without  a  superior  in  the  training 
of  industrial  teachers.  Every  local  industrial  board 
could  well  afford,  at  its  own  expense,  to  give  to  its  teachers 
who  have  had  shop  experience  a  summer  course  every 
year  in  that  school. 

In  fact,  the  continuation  school  in  Wisconsin1  is  the 

1  It  is  sometimes  stated  that  the  Wisconsin  system  is  a  "dual  system," 
that  is,  that  it  separates  industrial  education  from  the  common  schools 
and  places  it  under  the  commercializing  direction  of  employers  of  labor. 
Such  is  not  the  case.  The  industrial  boards  which  control  these  schools 
are  composed  of  two  manufacturers,  two  wage-earners,  and  the  super- 
intendent of  schools,  all  appointed  by  the  board  of  education.  This 
system  is  necessary  as  an  effort  to  get  the  industrial  schools  away  from 


376  LABOR   AND   ADMINISTRATION 

first  step  in  recognizing  the  most  important  need  of  both 
modern  industry  and  modern  education  —  the  need  of 
making  apprenticeship  universal. 

The  law  of  1911  requires  boys  and  girls  under  sixteen, 
and  apprentices  over  sixteen,  to  attend  five  hours  a  week 
in  the  day-time.  But  employers  can  evade  the  appren- 
ticeship part  of  the  law  by  refusing  to  make  apprentice- 
ship contracts,  or  by  cancelling  contracts  already  made. 
The  excuse  which  some  employers  have  offered  for  thus 
evading  it,  is  that  they  do  not  purpose  to  pay  their  boys 
for  something  they  do  not  earn  —  they  will  not  pay 
apprentices  for  going  to  school.  This  excuse  is  plausible 
for  the  individual  employer  who  looks  only  at  his  own 
personal  profits.  It  is  not  reasonable  from  the  stand- 
point of  the  state  that  takes  into  account  the  interest 
of  all  employers,  as  well  as  the  future  working  population 
that  all  industries  must  depend  upon. 

A  more  rational  excuse  would  be  that  the  kind  of 
teaching  secured  does  not  help  the  boys  to  become  more 
intelligent  workmen.  If  this  is  true,  then  the  blame  is 
on  the  teachers  in  the  continuation  schools.  In  some 
places,  with  the  right  kind  of  teachers,  employers  are 
gladly  making  apprenticeship  contracts,  where  formerly 
they  refused  them  or  had  cancelled  them.  We  may  expect 
that  when  teachers  of  continuation  schools  have  learned 
to  teach  the  theory  and  science  which  modern  appren- 
ticeship requires,  then  all  boys  and  girls  up  to  eighteen, 
and  perhaps  even  to  twenty-one  years  of  age,  shall  be 

the  academic  control  of  the  teaching  profession  that  knows  too  little  of 
the  shop  and  factory  conditions  to  be  met.  As  a  matter  of  fact,  the 
industrial  schools  are  actually  controlled  by  the  teaching  profession,  for 
that  is  the  only  one  that  can  teach.  The  manufacturers  and  mechanics 
on  the  boards  do  not  control,  but  they  are  an  industrial  counterweight 
to  what  would  otherwise  be  academic  control. 


INDUSTRIAL   EDUCATION  IN  WISCONSIN    377 

declared  by  law  to  be  apprentices ;  and  all  shall  be  re- 
quired to  attend  the  school  on  their  employers'  time, 
regardless  of  any  apprenticeship  contract.  With  such 
a  system  of  industrial  education,  beginning  at  fourteen, 
extending  to  eighteen  or  twenty-one  and  supplementing 
the  training  of  the  shop,  we  may  expect  considerably  to 
erase  that  blot  on  our  modern  industry  —  the  boy  of 
seventeen  to  twenty,  vainly  wandering  from  shop  to 
shop  in  search  for  higher  wages  and  an  illicit  apprentice- 
ship, and  finally  sinking  into  the  class  of  stupid,  low-paid 
workers,  or  the  class  of  dependent  paupers. 

Even  for  the  boys  and  girls  between  fourteen  and 
sixteen  years  of  age  the  true  object  of  the  continuation 
school  is  not  so  much  to  teach  them  a  trade  different  from 
that  of  the  industry  in  which  they  are  employed.  It  is 
rather  to  teach  them  the  essentials  which  lead  to  pro- 
motion in  that  or  any  other  industry.  Most  of  them, 
indeed,  are  engaged  in  what  is  known  as  "  blind-alley  " 
jobs,  that  lead  nowhere.  They  think  they  want  to  take 
up  something  else,  such  as  machinery,  carpentry  or 
stenography.  But  they  are  not  yet  ready  to  take  up 
a  trade.  They  lack  those  essentials  of  shop  arithmetic, 
elementary  book-keeping,  shop  organization,  business 
correspondence  and  so  on.  In  many  cases  they  lack 
even  the  essentials  of  common  school  education  which 
parochial  or  common  schools  should  have  given  them 
before  they  attempt  to  qualify  for  the  industrial  essentials. 
All  of  these  are  necessary  to  advancement  in  the  in- 
dustry in  which  they  are  employed,  and  will  also  be 
found  necessary  to  any  other  industry  that  they  may 
afterwards  fall  into. 

In  the  case  of  girls  there  is  an  additional  problem. 
The  employer  who  hires  a  girl  must  be  looked  upon  as 


378  LABOR   AND   ADMINISTRATION 

making  a  present  profit  at  the  expense  of  the  future 
homes  of  the  state,  as  well  as  a  profit  at  the  expense  of 
the  girl's  own  future  promotion  in  industry.  It  is  but 
just  that  the  employer  should  give  up  a  few  hours  of 
his  girl's  time  that  she  may  get  instruction  in  home- 
keeping,  cooking,  sewing  and  the  like,  as  well  as  indus- 
trial and  business  essentials.  This  applies  to  both 
boys  and  girls  in  all  of  those  subjects  which  the  Wiscon- 
'sin  law  includes  under  instruction  in  health,  safety, 
citizenship  and  business.  These  are  essentials  that  every 
workingman  and  workingwoman  should  know,  for  upon 
them  depend  their  future  ability  to  take  care  of  them- 
selves, and  thus  to  become  steady  and  successful  workers 
instead  of  casual  workers,  paupers  and  dependents. 

Of  course,  not  all  can  get  promotion  to  the  higher 
positions.  Machine  industry  compels  the  majority  to 
stay  with  the  machine  and  to  remain  common  laborers. 
But  the  amazing  stupidity  of  these  workers,  as  it  shows 
itself  at  the  employment  office,  disqualifies  them  even 
for  finding  jobs  at  machinery  or  common  labor.  The 
one  great  handicap  of  this  mass  of  laborers  is  their  lack 
of  intelligence.  They  do  not  know  even  how  to  hunt 
a  job,  still  less  to  keep  it.  If  the  continuation  schools 
can  furnish  them  just  simple  ordinary  intelligence,  it  will 
raise  their  level  much  above  their  present  stage. 

The  law  does  not  as  yet  apply,  in  its  compulsory 
attendance  requirements,  to  children  who  work  at  home, 
nor  to  girls  in  domestic  service,  nor  to  children  on  the 
farm.  These  have  not,  of  course,  been  drawn  into  the 
stream  that  runs  through  the  modern  factory.  But  for 
them,  industrial  education  should  have  a  place  as  well 
as  for  the  factory  worker.  Here  the  problem  widens  out 
and  reaches  into  nearly  every  home.  In  some  towns  the 


INDUSTRIAL   EDUCATION  IN  WISCONSIN    379 

continuation  schools  are  beginning  to  provide  for  them. 
Outside  the  towns  it  is  the  problem  of  the  rural  schools 
in  agricultural  education.  As  fast  as  teachers  are 
equipped,  in  town  or  country,  for  the  kind  of  instruction 
that  their  children  require,  so  fast  may  we  expect  the 
people  and  the  lawmakers  to  require  their  children  to 
attend. 

Thus  gradually  shall  we  approach  the  new  apprentice- 
ship that  modern  business,  in  industry  and  agriculture, 
imperatively  demands.  It  must  be  universal;  in  that 
every  boy  and  girl  must  become  a  business  man,  if  he 
would  hold  his  own  in  the  increasing  competition  of 
buying  and  selling ;  he  must  become  an  intelligent  worker, 
if  he  would  advance  beyond  the  dead-line  of  dependency 
on  others;  he  must  become  a  citizen,  in  fact  as  well 
as  law,  if  he  would  take  his  part  in  the  complicated 
government  that  determines  his  opportunities  and  his 
burdens ;  he  must  protect  his  health,  if  he  would  stand 
the  strain  of  study  and  exertion  that  are  the  first  con- 
dition of  promotion.  All  of  these  requirements  are  com- 
mon to  all  occupations,  yet  no  occupation  of  modern  in- 
dustry teaches  them.  The  gap  must  be  filled  by  the 
state,  the  school,  the  teacher.  This  is  not  trade  educa- 
tion, nor  even  vocational  education  —  it  is  that  univer- 
sal apprenticeship  that  is  common  to  all  trades  and 
vocations. 

I  have  been  able  to  sketch  only  an  outline  of  the  rela- 
tions between  industrial  education  and  dependency. 
Industrial  education  is  one  of  the  essential  things  needed 
to  offset  the  monotony  and  specialization  of  modern 
industry,  and  to  enable  workmen  to  find  and  keep  their 
jobs.  Monotony  and  specialization  terminate  in  mental 
degradation,  irregular  work,  underpaid  work  orpauperism, 


380  LABOR   AND   ADMINISTRATION 

for  the  grown-up  workingmen  of  the  state,  although  it  is 
seemingly  offset  by  fallacious  high  wages  for  boys.  The 
boys  make  more  money  than  their  fathers  who  have 
gone  through  the  same  machine,  and  so  their  fathers  get 
the  pauper's  idea  of  living- on  the  wages  of  their  children. 
Thus  the  evils  create  each  other  in  a  vicious  circle.  It 
would  be  far  better  for  the  boys  to  get  lower  wages,  if 
thereby  they  get  industrial  education.  This  would  be 
the  case  if  all  boys  under  eighteen,  or  perhaps  twenty- 
one,  were  by  law  treated  as  apprentices.  Not  until  such 
a  policy  is  adopted  can  we  predict  that  industrial  edu- 
cation will  do  much  toward  reducing  the  amount  of  de- 
pendency that  modern  industry  produces.  Even  then, 
there  are  many  other  things  that  are  also  necessary  — - 
a  state- wide  system  of  employment  offices  to  reduce  the 
time  lost  between  jobs  —  to  bring  employees  to  the  jobs 
they  are  fitted  for  —  to  equalize  employment  in  dull 
seasons  and  busy  seasons  —  tc  shorten  hours  of  labor  for 
monotonous  and  specialized  work.  Other  policies  that 
are  necessary  might  also  be  mentioned.  But  this,  at  least, 
can  be  said  for  the  state  that  takes  the  lead  in  industrial 
education,  —  if  it  adopts  a  comprehensive  system  for 
all  boys  and  girls;  if  it  exerts  itself  above  all  else  to 
bring  out  and  train  teachers  who  combine  practical 
shop  work  with  an  understanding  of  the  theories  and 
sciences  that  underlie  intelligent  shop  work,  and  with 
ability  to  teach,  then  such  a  state  will  take  the  lead  in  the 
industrial  development  of  the  country.  It  will  afford 
a  wider  range  of  selection  for  the  mechanics,  foremen 
and  intelligent  leaders  in  its  industries.  It  will  produce 
a  larger  proportion  of  steady  and  intelligent  workers. 
It  will  produce  a  smaller  proportion  of  helpless  and  ill- 
fitted  workers  —  an  expensive  charge  on  the  growing 


INDUSTRIAL   EDUCATION   IN   WISCONSIN     381 

and  changing  industries  of  the  state,  or  on  the  taxpayers 
who  must  provide  their  useless  support. 

Of  course,  it  takes  time.  Social  progress  does  not 
spring  suddenly,  like  a  full-grown  talking- machine  from 
the  forehead  of  Edison.  Three  million  people  cannot 
figure  out  together  in  advance  just  what  they  will  want. 
They  can  only  pass  upon  the  results  after  they  have 
happened.  It  is  the  business  of  those  who  do  the  plan- 
ning to  know  in  advance  what  the  results  will  be.  Other- 
wise reaction  occurs,  and  the  programme  goes  further 
backward  than  it  was  at  the  beginning.  This  is  espe- 
cially true  of  such  a  profound  and  far-reaching  reform 
as  industrial  education  through  the  continuation  school. 
It  reaches  into  almost  every  workshop  and  every  home 
in  the  state.  It  goes  to  the  very  sources  of  prosperity 
and  poverty.  No  greater  undertaking  could  be  espoused 
by  a  democratic  people.  No  other  possesses  greater 
promise  of  usefulness.  Failures  here  and  there  will 
occur,  but  successes  here  and  there  will  confute  them.  So 
important  and  vital  is  the  movement  that  the  failures 
must  be  promptly  corrected  and  the  successes  be  made 
universal.  Then  we  may  expect  that  industrial  educa- 
tion will  be  accepted  and  enlarged ;  that  it  will  contribute 
a  decisive  share  toward  the  reduction  of  dependency 
and  the  elevation  of  independence. 


CHAPTER  XXI 

THE  INDUSTRIAL  COMMISSION  OF  WISCONSIN  1 

THE  power  to  adopt  measures  for  the  protection  of 
employees  is  a  legislative  power.  The  legislature  must 
specify  the  things  to  be  protected,  and  the  courts  con- 
strue their  specifications  strictly.  If  the  law  says  that 
tumbling  rods,  set  screws,  shafting  and  all  dangerous 
machinery  must  be  safeguarded,  an  inspector  has  no 
authority  to  order  a  buzz  saw  to  be  safeguarded,  be- 
cause it  is  not  like  a  tumbling  rod,  set  screw  or  shafting. 
The  inspector  has  no  discretion  in  extending  the  law 
beyond  the  kind  of  things  specified. 

But,  while  the  inspector's  discretion  is  limited  in  extent, 
it  has  considerable  range  in  another  direction.  He  has 
authority  to  determine  how  much  or  how  little  the  things 
specified  shall  be  protected.  The  legislature  gives 
authority  to  each  inspector  to  go  into  an  establishment 
and  to  order  changes  to  be  made  such  as  will,  in  his 
judgment,  make  the  machinery  safe.  The  degree  of 
safety,  in  the  last  analysis,  turns  upon  the  discretion  of  the 
inspector  who  makes  the  examination.  Power  is  practi- 
cally delegated  to  him  in  carrying  out  a  legislative  act. 

In  foreign  countries,  especially  on  the  continent  of 
Europe,  the  method  is  different.  There  the  legislature 

1  Address  delivered  at  Chicago  Conference  of  American  Association 
for  Labor  Legislation,  Sept.,  1911.  American  Labor  Legislation  Review, 
Vol.  I,  No.  4.  This  article  is  a  foreword,  prepared  when  the  Commission 
was  just  beginning.  The  next  article  followed  a  year  and  a  half  of  ex- 
perience, 

382 


WISCONSIN  INDUSTRIAL   COMMISSION     383 

enacts  a  general  rule  or  order  requiring  that  all  machinery 
and  working  places  shall  be  kept  safe  and  hygienic,  and 
then  leaves  it  to  the  administration  officials  to  work 
out  the  details  and  to  issue  orders  which  shall  determine 
how  that  law  shall  apply  to  different  industries.  So 
when,  in  France,  parliament  adopted  a  law  requiring 
one  day's  rest  in  seven,  it  enacted  a  general  law  in  a  few 
words,  and  since  that  time  the  president  of  the  republic 
through  the  Minister  of  Commerce  and  Labor,  has  been 
issuing  orders  prescribing  the  specific  hours  and  days 
of  labor  in  different  industries. 

But  in  America  the  legislature  is  supreme.  The  ad- 
ministration can  issue  only  such  orders  as  the  legislature 
definitely  lays  down.  Otherwise  legislative  power  would 
be  delegated,  and,  under  our  constitutions,  with  their 
dread  of  tyranny,  this  cannot  be  done.  In  order  to  get 
away  from  this  restriction  we  have  been  compelled  to 
create  commissions,  giving  them  power  to  issue  orders 
similar  in  effect,  but  different  in  theory  and  procedure, 
to  those  issued  in  Europe.  This  came  about  first  in 
the  health  department,  and  the  Board  of  Health  has 
power,  within  limits,  to  issue  orders  having  the  effect 
of  law,  as  though  issued  by  the  legislature. 

Following  this  has  come  the  regulation  of  railroads  and 
public  utilities.  Instead  of  enacting  a  law  prescribing 
rates  and  services,  the  legislature  merely  enacts  a  general 
law  requiring  rates  and  services  to  be  reasonable.  A 
railroad  commission  is  then  created  and  authorized  to 
investigate  the  facts  and  to  discover  and  establish  what 
is  reasonable  in  each  case.  When  the  commission  has 
published  the  rate,  all  parties  interested  can  have  a  hear- 
ing. Everybody  has  an  opportunity  to  protest  and  to 
present  other  facts,  and  then  the  order  is  finally  issued  and 


384  LABOR   AND   ADMINISTRATION 

is  binding.  But  any  one  dissatisfied  can  go  into  court 
and  plead  that  it  is  unreasonable.  If  the  court  sustains 
him,  it  will  issue  an  injunction  against  the  enforcement 
of  that  order. 

It  is  the  theory  of  this  procedure  that  the  commission 
has  no  discretion.  It  merely  investigates  and  announces 
a  fact.  That  fact  is  the  reasonable  thing  the  legislature 
had  in  mind,  but  did  not  have  the  time  and  means  to 
discover. 

The  procedure  conforms  to  the  theory.  Everybody 
affected  by  the  order  must  have  had  a  chance  to  tell 
the  facts  he  knew,  and  the  commission  must  give  them 
due  weight.  Finally,  the  court  protects  him  against 
any  unlawful  act  of  the  commission. 

In  the  state  of  Wisconsin  one  very  important  device 
has  been  introduced  to  protect  the  Railroad  Commission 
before  the  state  courts.  This  is  the  provision  that  when 
an  order  of  the  commission  is  contested  in  court  and  an 
injunction  is  asked  for,  the  railroad  company  is  pro- 
hibited from  bringing  in  any  evidence  which  it  has  not 
already  presented  to  the  commission.  If  it  presents  any 
new  evidence  in  court  which  it  did  not  give  to  the  com- 
mission, then  the  court  is  required  immediately  to  send 
the  whole  case  back  to  the  commission  and  to  give  to 
it  the  opportunity  to  consider  the  new  evidence  and  to 
modify  its  decision.  This  has  taken  away  from  the 
state  courts  the  arbitrary  feature  of  the  injunction,  be- 
cause the  commission  is  in  better  position  than  the  court 
to  get  the  facts.  The  court  is  restricted  to  technical 
rules  of  evidence.  The  commission  takes  any  evidence 
which  is  presented ;  it  can  send  out  its  own  investigators 
to  get  facts  openly  or  in  secret.  It  forms  its  own  con- 
clusions and  issues  its  orders  on  the  basis  of  more  facts 


WISCONSIN  INDUSTRIAL   COMMISSION     385 

than  the  court  admits.  Then  when  the  case  comes  into 
court,  the  facts  as  stated  by  the  commission  are  prima 
facie  true.  The  court,  of  course,  cannot  be  restrained 
from  going  behind  these  facts,  but  the  law  makes  the 
commission  in  effect  the  standing  referee  of  the  court  in 
matters  •  of  investigation.  The  commission  can  make 
investigations  along  economic  and  sociological  lines,  a 
procedure  not  practicable  for  the  courts.  If  they  could 
have  made  these  investigations,  and  were  not  tied  down 
by  technical  rules,  the  injunction  would  not  have  been 
a  menace  to  reasonable  regulation.  For  we  certainly 
can  trust  the  integrity  of  the  courts  as  much  as  the  in- 
tegrity of  a  commission.  But  here  we  have  not  merely 
a  matter  of  integrity  —  we  have  a  problem  of  expert 
investigation. 

If,  then,  the  facts  thus  acquired  bring  the  case  within  the 
police  power  of  the  state,  the  court  sustains  the  commission. 
This  has  been  the  attitude  of  the  Supreme  Court  of  Wis- 
consin toward  the  Railroad  Commission.  The  industrial 
commission  law  applies  the  same  theory  and  procedure 
to  the  relations  of  capital  and  labor  that  the  railroad 
commission  law  applies  to  the  relations  of  public  cor- 
porations and  consumers. 

One  reason  why  labor  questions  in  American  states 
have  not  been  acted  upon  according  to  the  theory  of 
a  commission  is  the  fact  that  the  labor  department  is 
composed  of  a  single  chief  and  several  deputies  acting 
individually.  The  chief  and  each  deputy  have  equal 
authority,  and  there  are  as  many  standards  as  there  are 
deputies.  The  theory  of  the  law  is  that  the  legislature 
has  set  the  standard,  and  all  the  deputies  are  acting  alike. 
But  this  theory  is  impracticable.  There  must  be  some 
leeway.  It  is  the  method  of  reaching  a  decision  within 
2  c 


386  LABOR   AND   ADMINISTRATION 

this  leeway  that  the  constitution  protects.  "  Due 
process  of  law "  requires  that  decisions  should  be 
reached  through  public  hearings  after  due  notice  so 
that  all  parties  can  have  a  voice.  Then,  after  such 
thorough  investigation,  orders  can  be  issued  based  on 
the  findings. 

But,  properly,  the  investigation  and  decision  should  be 
made  by  more  than  one  person.  A  single  commissioner 
might  be  given  the  power  to  issue  these  orders,  but  our 
dread  of  tyranny  revolts  at  this  suggestion  in  matters  af- 
fecting property  interests.  Consequently,  the  thing  has 
worked  itself  out  in  public  utility  matters,  so  that  we  have 
adopted  a  commission  usually  of  three  members  in  the 
states,  while  the  Interstate  Commerce  Commission  is  com- 
posed of  seven.  The  industrial  commission  law  of  Wiscon- 
sin provides  for  a  commission  of  three.  It  lifts  the  matter 
up  from  the  level  of  decisions  based  on  the  opinions  of 
a  number  of  factory  inspectors  and  concentrates  it  in  the 
hands  of  three  men,  giving  them  power  to  get  all  the  facts. 
At  the  same  time  the  legislature  lays  down  the  general 
rule  that  every  employer  shall  furnish  to  his  employees  the 
necessary  protection  to  life,  health,  safety  and  welfare. 
This  places  the  obligation  upon  the  employer.  He  must 
maintain  his  place  of  employment  and  its  premises  so 
that  the  employee  shall  not  incur  the  risk  of  accident. 
He  must  furnish  safety  devices  and  safeguards.  He 
must  adopt  methods  and  processes  which  shall  be  safe 
for  the  employees. 

But  it  is  not  left  to  the  employer  to  tell  what  are  those 
safe  methods  and  processes,  nor  is  it  left  to  the  factory 
inspectors.  To  the  Industrial  Commission  is  assigned 
the  duty  of  investigating  and  ascertaining  what  safety 
devices  and  safeguards,  what  means,  methods  and  proc- 


WISCONSIN  INDUSTRIAL  COMMISSION     387 

esses,  are  best  adapted  to  render  the  factory  safe. 
Having  ascertained  what  they  are,  the  commission  issues 
an  order  prescribing  that  they  shall  be  installed  for  each 
factory  or  each  class  of  factories.  This,  then,  is  the  law- 
ful order  which  all  are  required  to  observe. 

The  situation  regarding  prosecutions  now  takes  on 
a  different  aspect.  Hitherto,  if  a  factory  inspector  went 
into  a  factory  and  found  a  machine  not  protected,  he 
gave  orders  to  the  manufacturer  to  put  on  a  protective 
device,  and  allowed,  say,  thirty  days.  If  after  thirty 
days  the  manufacturer  had  not  complied,  the  inspector 
brought  the  matter  to  the  justice's  court.  The  justice 
had  before  him  the  factory  inspector  as  prosecuting 
witness  and  the  manufacturer  as  defendant.  The  justice 
perhaps  immediately  asked  the  inspector  how  he  knew 
whether  or  not  the  machine  was  safe,  or  whether  the 
device  would  make  it  safe,  and  went  on  to  say  that  the 
manufacturer  perhaos  knew  as  much  about  it  as  the 
inspector.  The  case  might  not  even  go  to  the  jury  to 
decide  the  facts.  The  judge  might  say  "  case  dismissed  " 
on  the  ground  of  insufficient  reason. 

The  great  difficulty  of  factory  inspection  laws  has  been 
the  prosecutions.  Under  the  new  Wisconsin  law  the 
question  of  reasonableness  or  necessity  cannot  be  raised 
in  the  justice's  court.  The  only  question  that  can  come 
up  in  the  lower  court  is :  What  was  the  standard  set 
by  the  commission  for  that  machine?  and  the  question 
for  justice  or  jury  then  becomes :  Did  the  manufacturer 
put  on  the  safety  device  or  not?  One  cannot  raise  the 
question  in  that  court  as  to  whether  that  is  the  right 
kind  of  a  device.  If  he  wants  to  raise  that  question,  he 
can  do  it  in  two  ways  :  (i)  Appeal  to  the  commission  on 
the  ground  that  the  order  is  not  adapted  to  his  factory. 


388  LABOR  AND   ADMINISTRATION 

The  commission  must  then  hold  a  hearing  and  decide 
upon  it.  (2)  Then  if  he  is  not  satisfied,  he  cannot  go  back 
to  the  justice's  court,  but  must  prosecute  the  commission 
itself.  There  is  but  one  court  in  the  state  where  this  can 
be  done,  the  court  of  Dane  County  at  the  capital  of  the 
state.  This  action  is  given  precedence  over  other  actions 
of  a  different  nature.  It  is  carried  thence  to  the  Supreme 
Court.  So  the  question  of  prosecution  takes  on  a  dif- 
ferent aspect.  Justices'  courts  now  cannot  take  up  the 
question  of  the  validity  of  the  order.  They  are  restricted 
to  the  question  of  facts. 

Furthermore,  the  factory  inspector  does  not  issue  any 
orders.  He  merely  notifies  the  commission,  which  in  turn 
notifies  the  employer  and  issues  an  order,  if  necessary. 
Thus  the  inspector  is  both  supported  by  standards  well 
known  throughout  the  trade,  and  shorn  of  that  petty 
authority  that  sometimes  irritates.  The  manufacturers 
also  are  in  a  better  position,  because  they  have  a  voice 
in  making  the  standard  through  public  hearings,  and  they 
have  themselves  taken  part  in  deciding  on  what  is  to  be 
adapted  to  their  individual  circumstances.  The  pro- 
cedure is  the  same  as  when  the  Railroad  Commission 
established  the  measure  for  1000  cubic  feet  of  gas.  The 
engineer  of  the  commission  drew  up  his  proposed  orders 
as  to  what  1000  feet  of  gas  should  be,  how  rapidly  it 
should  flow,  how  the  instruments  should  be  constructed 
to  measure  it,  what  candle  power  it  should  yield  and  so 
on.  This  tentative  measure  was  then  sent  over  the  state, 
and  to  outside  experts,  and  the  gas  manufacturers  came 
to  Madison  for  their  hearing.  As  a  result  of  this  hearing 
two  standards  were  established  :  one  for  large  cities  and 
one  for  small  cities.  So  it  would  be  in  standardization 
of  safety  and  sanitation.  Some  qualified  person,  acting 


WISCONSIN  INDUSTRIAL   COMMISSION     389 

under  the  commission,  would  send  out  his  tentative 
specifications,  providing  for  what  he  thought  was  neces- 
sary to  make  the  industry  safe,  and,  after  manufacturers, 
employees  and  others  interested  had  examined  the 
schedule,  they  would  come  together  and  discuss  the 
matter  with  the  commission.  When  the  proper  thing 
was  decided  upon,  it  would  be  adopted  as  a  rule  and  be 
put  into  effect. 

In  the  public  utilities  law,  the  legislature  simply  adopts 
the  rule  that  rates  shall  be  "  reasonable."  In  labor 
legislation  we  have  a  different  situation.  The  legislature 
may  enact  a  rule  that  factories  or  places  of  employment 
shall  be  "  reasonably  safe,"  but  reasonably  safe,  accord- 
ing to  law,  means  just  ordinary  safety  that  any  employer 
would  exercise  without  taking  extra  care.  That  would 
not  be  a  high  standard  for  legislation.  It  would  not 
make  it  possible  for  the  commission  to  get  the  same  kind 
of  reasonable  regulation  as  they  get  in  railroad  rates. 
Here  it  is  not  an  ordinary  railroad  rate ;  it  is  something 
more.  The  definition  for  safety  which  appears  in  this 
law  is  as  follows  :  "  The  term  '  safe  '  or  'safety1  as  applied 
to  an  employment  or  a  place  of  employment  shall  mean 
such  freedom  from  danger  to  the  life,  health  or  safety  of 
employees  or  frequenters  as  the  nature  of  the  employment 
will  reasonably  permit."  We  are  required  to  have  the 
word  "  reasonable,"  which  in  law  means  due  considera- 
tion of  all  the  facts  in  the  case.  Otherwise,  the  law  is 
unconstitutional.  But  we  need  something  more  than 
ordinary  safety.  If  any  new  methods  of  safety  have  been 
devised  and  are  practicable,  and  therefore  reasonable, 
the  commission  can  require  all  employers  to  put  them  in, 
for  they  are  as  reasonable  as  the  nature  of  the  employ- 
ment will  permit.  In  other  words,  it  is  possible  by  this 


390  LABOR  AND   ADMINISTRATION 

definition  of  safety  to  improve  the  standards  and  to  secure 
more  than  ordinary  safety. 

Both  employer  and  employee  are  required  to  observe 
these  orders  of  the  commission.  The  requirement  upon 
employees  is  a  new  feature  arising  from  the  fact  that  the 
employer  under  the  new  compensation  law  must  pay 
damages  to  the  employee  who  injures  himself,  as  well  as 
to  the  employee  who  is  injured  through  the  negligence 
of  a  fellow-employee.  The  old  doctrine  held  that,  if 
a  person  injured  himself  (and  everybody  could  do  as  he 
pleased  with  himself)  the  employer  need  not  pay  for  the 
injury.  The  question  which  now  arises  is,  can  the 
employee  be  compelled  to  make  use  of  the  safety  devices 
which  are  furnished?  Under  the  old  liability  law,  if  a 
moulder  let  melted  iron  fall  on  his  feet,  that  was  not  the 
fault  of  the  employer.  He  could  not  bring  suit  against 
the  employer  and  get  damages  for  his  burned  feet,  but 
under  the  compensation  law  he  can.  The  employer  will 
be  required  to  pay  him  65  per  cent  of  the  loss  of  wages 
for  injury  which  he  has  suffered.  Now,  the  employer 
would  naturally  want  that  man  to  wear  Congress  shoes 
that  could  be  quickly  snatched  off,  and  he  might  even 
furnish  them  to  him  at  cost.  The  question  arises,  can 
that  man  be  compelled  to  wear  those  protective  shoes? 
This  is  an  open  question  and  is  not  decided.  It  is  at- 
tempted, however,  in  this  law  to  come  as  near  to  it  as 
possible.  There  are  two  points :  (i)  Employees  can  be 
required  to  refrain  from  destroying  devices  which  the 
employer  puts  in.  (2)  Employees  can  be  punished  for 
preventing  another  employee  from  using  safety  devices. 
The  other  question,  whether  he  can  be  punished  for 
refusing  to  use  them  himself,  is  an  open  one.  The  law 
reads :  "No  employee  shall  remove,  displace,  damage, 


WISCONSIN  INDUSTRIAL   COMMISSION     391 

destroy  or  carry  off  any  safety  device  or  safeguard 
furnished  and  provided  for  use  in  any  employment  or 
place  of  employment,  nor  interfere  in  any  way  with  the 
use  thereof  by  any  other  person,  nor  shall  any  such 
employee  interfere  with  the  use  of  any  method  or  process 
adopted  for  the  protection  of  any  employee  in  such  em- 
ployment or  place  of  employment  or  frequenter  of  such 
place  of  employment,  nor  fail  or  neglect  to  do  every  other 
thing  reasonably  necessary  to  protect  the  life,  health, 
safety  or  welfare  of  such  employees  or  frequenters." 
The  commission  would  be  called  upon  to  issue  a  rule 
requiring  the  moulder  to  wear  boots,  and  then  the  ques- 
tion would  arise,  would  the  courts  sustain  this  order? 
It  certainly  is  reasonable,  from  the  standpoint  of  work- 
men's compensation,  that  employees  shall  take  care  of 
themselves  and  thus  protect  the  employer  in  his  new 
duties  of  protecting  them. 

Another  feature  is  the  control  which  the  commission 
has  over  the  construction  of  new  factories.  New  build- 
ings must  be  cared  for  as  to  safety  and  sanitation,  the 
same  as  old  ones.  The  law  says  that  "  no  employer  or 
other  person  shall  hereafter  construct  or  occupy  or 
maintain  any  place  of  employment  that  is  not  safe." 

There  are  three  kinds  of  orders  dealt  with  in  the  law : 
(i)  general  orders  applying  to  all  manufacturers  or  all 
persons  of  the  same  class  throughout  the  state;  (2) 
special  orders  applying  only  to  one  factory,  one  estab- 
lishment or  one  person;  (3)  local  orders,  or  orders  of 
similar  and  conflicting  nature  issued  by  municipal 
councils,  boards  of  aldermen  or  local  boards  of  health. 
It  is  provided  that  if  the  commission  standardizes  an  in- 
dustry and  issues  its  orders,  any  rule  of  a  local  board  in 
conflict  therewith  shall  be  void.  Meanwhile  the  local 


392  LABOR   AND   ADMINISTRATION 

board  can  go  ahead  and  issue  their  orders,  the  employer 
being  protected  by  the  right  of  appeal  to  the  state  com- 
mission to  determine  whether  there  is  a  conflict  or 
whether  the  local  order  is  unreasonable.  This  is  neces- 
sary in  order  to  have  uniformity  of  standards  throughout 
the  state.  It  has  been  criticised  as  a  violation  of  home 
rule,  but  it  is  really  a  protection  for  local  boards  of  health 
and  municipal  councils,  because  their  orders  are  subject 
to  court  review  and  injunction.  The  law  simply  provides 
that  if  an  employer  objects  to  any  prohibition  in  a  local 
rule,  he  is  not  allowed  to  go  first  into  court,  but  must  first 
go  to  the  commission.  Then  if  not  satisfied  with  the 
commission's  orders,  he  can  go  into  the  Dane  County 
Court,  and  then  to  the  Supreme  Court.  Consequently, 
uniformity  of  all  orders  is  approximated  and  the  local 
boards  are  protected. 

The  practical  outcome  of  this  new  procedure  should  be 
a  progressive  and  accurate  adjustment  of  factory  in- 
spection to  the  changes  in  industry  and  the  new  risks 
that  accompany  modern  industry.  Hitherto,  when  it 
was  discovered  that  the  buzz  saw  or  the  set  screw  had 
been  omitted  from  the  law,  it  was  necessary  to  get  to- 
gether the  Federation  of  Labor,  the  Women's  Trade 
Union  League,  and  all  the  friends  of  labor,  to  organize 
them  into  a  lobby  and  to  go  down  to  the  legislature  in 
order  to  get  the  words  "  buzz  saw  "  and  "  set  screw  " 
inserted  in  the  law.  Now  it  is  only  necessary  for  the 
Industrial  Commission  to  show  that  these  things  are 
dangerous  and  the  protection  practicable.  The  dif- 
ference is  obvious.  It  now  is  practicable  in  Wisconsin, 
without  further  legislation,  for  the  Industrial  Commis- 
sion to  adopt  and  enforce  the  admirable  rules  of  the 
Massachusetts  Board  of  Boiler  Rules,  if  they  are  found  to 


WISCONSIN   INDUSTRIAL   COMMISSION     393 

be  adapted  to  Wisconsin  conditions.  So  also,  the  com- 
mission may  learn  from  the  novel  work  of  "  medical  " 
inspection  of  the  Massachusetts  Board  of  Health  and  the 
New  York  Department  of  Labor,  and  may  adapt  to 
Wisconsin,  so  far  as  practical,  the  best  that  other  states 
and  countries  have  been  able  to  work  out  for  safety  and 
sanitation  of  work  places. 

This  law  goes  further,  with  the  object  of  centring  in 
one  body  all  the  relations  of  employer  and  employees, 
just  as  the  Railroad  Commission  centres  in  one  body  all 
of  the  relations  of  the  public  utility  corporations  and  the 
consumers.  Everything  that  comes  up  between  the  two 
interests  is  under  the  jurisdiction  of  one  commission. 
This  includes,  for  example,  everything  relating  to  bar- 
gains between  employer  and  employee.  The  law 
abolishes  the  Board  of  Mediation  and  Arbitration  and 
turns  over  that  work  to  the  commission  with  the  aid  of 
temporary  local  boards. 

The  same  is  true  of  unemployment.  The  commission 
has  power  to  establish  and  conduct  free  employment 
agencies,  and  to  supervise  private  agencies.  It  goes 
further  with  reference  to  directing  apprentices  and  minors 
into  promising  employments.  It  takes  up  matters  of 
industrial  and  agricultural  training,  and  may  establish 
offices  in  the  state. 

The  legislature  has  not,  however,  given  to  the  In- 
dustrial Commission  any  authority  in  the  execution  of 
the  child  labor,  woman  labor,  and  other  labor  laws 
similar  to  its  authority  in  the  factory  inspection  laws. 
The  new  ten-hour  law  for  women,  with  its  requirement 
of  a  full  hour  for  dinner,  has  already  pointed  plainly  to 
the  need  of  such  authority.  Many  cases  have  come  up, 
especially  in  restaurants,  where  it  seems  that  a  public 


394  LABOR   AND   ADMINISTRATION 

hearing  would  establish  the  fact  that  a  different  schedule 
of  hours  within  the  ten-hour  limit  would  be  more  "  rea- 
sonable "  than  the  rigid  schedule  of  the  legislature. 
Perhaps,  if  the  new  law  works  well  in  safety  and  sani- 
tation, its  principles  and  procedure  may  be  extended  by 
a  future  legislature  to  additional  subjects.1 

1  This  has  been  done  by  the  legislature  of  1913.    See  next  chapter. 


CHAPTER  XXII 

INVESTIGATION   AND    ADMINISTRATION1 

EMPLOYERS  of  Wisconsin  paid  $1,025,000  to  liability 
insurance  companies  in  1911 ;  scarcely  $300,000  of  it 
reached  the  pockets  of  the  employees  or  their  dependents. 
Ten  thousand  industrial  accidents  occur  in  Wisconsin 
each  year ;  100  of  these  are  fatal ;  the  others  cause 
disability  of  seven  days  or  more.  But  scarcely  10  per 
cent  of  the  injured  received  any  share  of  the  $300,000. 

This  is  the  big  problem  of  the  Industrial  Commission 
of  Wisconsin  — to  reduce  the  $1,025,000  paid  by  em- 
ployers, to  raise  the  $300,000  received  by  employees, 
and  to  distribute  it  among  10,000  instead  of  1000  em- 
ployees. The  commission  has  a  margin  of  $725,000 
to  work  upon,  and  a  great  margin  of  public  welfare  to 
promote.  It  can  reduce  the  $1,025,000  by  -reducing 
accidents  and  improving  the  health  of  employees.  It 
can  increase  the  $300,000  and  distribute  it  better  by 
fixing  definitely  the  compensation  for  all  employees. 

Instead  of  creating  a  commission  to  administer  the 
compensation  law,  and  then  leaving  the  factory  inspector 
to  enforce  the  safety  laws,  as  other  states  have  done,  the 
Wisconsin  legislature  of  1911  consolidated  the  two  de- 
partments in  a  single  commission.  And  instead  of 
specifying  the  many  details  of  factory  inspection,  the 
legislature  boiled  them  down  into  one  paragraph,  re- 

1  Survey,  Jan.  4,  1913,  under  the  title,  "Constructive  Investigation 
and  the  Wisconsin  Industrial  Commission." 

395 


396  LABOR  AND   ADMINISTRATION 

quiring  the  employer  to  protect  the  life,  safety,  health 
and  welfare  of  employees,  and  authorizing  the  commis- 
sion to  draw  up  rules  and  orders  specifying  the  details 
as  to  how  it  should  be  done. 

The  commission  is  a  fourth  branch  of  government 
combining,  but  not  usurping,  the  work  of  the  three  other 
branches.  It  is  a  legislature  continually  in  session, 
yet  the  power  of  legislation  is  not  delegated.  It  is  an 
executive  sharing  with  the  governor  the  enforcement  of 
laws,  but  also  enforcing  its  own  orders.  It  is  a  court 
deciding  cases  that  the  judiciary  formerly  decided,  but 
not  assuming  the  authority  of  the  courts. 

This  fourth  function  of  government  is  sometimes  des- 
ignated as  the  administrative  function.  But  adminis- 
tration, as  usually  understood,  is  merely  the  details  of 
execution.  Administration  and  execution  are  synony- 
mous. The  real  distinction  which  entitles  the  commis- 
sion to  its  position  as  a  fourth  branch  of  government  is 
not  administration,  but  investigation  and  research. 
But  its  investigations  are  not  the  academic  research  of 
the  laboratory  and- study,  nor  the  journalistic  investiga- 
tion of  the  agitator,  but  the  constructive  investigation 
of  the  administrator.  It  is  this  constructive  investiga- 
tion that  gives  to  the  commission  its  lawful  position  in 
government  and  its  effective  position  in  the  enforce- 
ment of  law. 

Constructive  investigation  should  tell  us  whether  the 
damage  to  the  employee  is  public  in  its  nature,  requiring 
legislation,  or  only  private,  requiring  exhortation.  It 
should  reveal  the  nature  and  cause  of  the  injury,  its 
cure  and  the  practicability  of  its  prevention.  It  should 
lead  to  such  administration  of  the  law  that  those  en- 
joined to  obey  it  would  respect  and  support  it. 


INVESTIGATION  AND   ADMINISTRATION    397 

We  concede  that  in  legislation  and  administration  for 
the  protection  of  health  and  safety  of  employees,  we  are 
behind  the  nations  of  Europe.  This  is  due  partly  to 
ignorance  through  lack  of  investigation,  partly  to  piece- 
meal legislation  that  hits  one  evil  at  a  time  when  it  gets 
sufficiently  exposed,  partly  to  the  veto  of  our  courts.  To 
those  who,  perhaps,  look  upon  Americans  as  materialistic, 
we  might  protest  that  we  have  put  into  practice  Plato's 
ideal  of  government  by  philosophers,  for  we  have  set 
apart  a  faculty  of  sociological  philosophers  in  each  state 
and  the  nation,  who  have  the  last  word  on  our  laws  and 
their  administration.  Their  vetoes  often  expound  the 
philosophy  that  preceded  the  French  Revolution,  num- 
bering such  sages  as  Grotius,  Rousseau  and  Montesquieu, 
and  such  doctrines  as  the  law  of  nature,  natural  rights 
and  the  general  will.  In  harmony  with  the  latter,  and 
in  conformity  with  constitutions  framed  during  the 
vogue  of  that  philosophy,  they  separate  the  body  politic 
into  three  departments  —  the  legislative,  representing 
the  general  will ;  the  executive,  physically  enforcing  it ; 
and  the  judiciary,  the  intellect  over  all. 

Recently  some  dissatisfaction  has  arisen  over  this 
division  of  functions.  It  has  shown  itself  in  threats  to 
"  recall "  the  judges  or  to  "  recall  their  decisions." 
For  some  time,  too,  the  executive  departments,  from 
president  down  to  policeman,  have  not  been  content 
blindly  to  follow  the  legislature  as  the  sole  custodian  of 
the  general  will,  and  have  taken  to  themselves  consider- 
able discretion  in  enforcing  the  laws.  Citizens,  also, 
take  liberties  with  the  general  will,  trusting  to  slip 
through  somewhere  between  the  three  branches  of  gov- 
ernment. 

But  the  courts  have  begun  to  recognize  another  branch 


398  LABOR  AND   ADMINISTRATION 

of  government.  This  branch  has  come  forth  especially 
to  provide  for  that  extension  of  the  police  power  required 
to  meet  the  rapidly  changing  and  widely  varying  con- 
ditions of  modern  life  and  business.  It,  therefore,  com- 
bines to  a  certain  degree,  the  activities  of  legislation, 
execution  and  judgment;  but  its  peculiar  activity, 
which  gives  it  a  separate  place  as  the  custodian  of  the 
police  power  in  the  body  politic,  is  that  of  investigation. 
It  is  upon  the  validity  of  its  investigations  that  it  is 
allowed  to  execute  the  general  will  and  to  survive  the 
scrutiny  of  the  courts. 

The  doctrine  which  the  court  applies  to  this  function 
of  investigation  is  both  the  noblest  and  the  most  practical 
of  legal  doctrines  —  "reasonableness."  By  this  doctrine 
the  court  applies  its  philosophy  to  the  particular  facts, 
but  requires  that  all  of  the  facts  be  taken  into  account. 
The  drastic  programme  of  disciplining  the  courts  by  the 
recall  on  the  ground  that  they  are  removed  from  acquaint- 
ance with  the  common  life  and  are  living  in  an  eighteenth 
century  philosophy,  might  be  somewhat  modified  if 
advantage  were  taken  of  this  exalted  doctrine.  It  may 
be  that  the  critics  of  the  judiciary  have  not  performed 
their  part  in  bringing  before  the  court  all  of  the  facts 
of  the  modern  development  of  industry  and  society  which 
the  doctrine  of  reasonableness  requires.  Counsel  often 
leaves  the  court  in  the  predicament  of  falling  back  on  its 
own  knowledge  of  what  is  "  common  knowledge."  Often 
this  kind  of  knowledge  is  several  years  behind  the  times, 
because  a  serious  injury  to  the  common  good  usually 
arises  and  spreads  extensively  before  the  scientific  ex- 
perts and  the  journalistic  agitators  are  able  to  make  it 
a  matter  of  common  knowledge.  The  investigative 
branch  of  government  should  be  the  one  that  furnishes 


INVESTIGATION  AND  ADMINISTRATION    399 

the  court  with  judicial  knowledge  of  injury  to  the  public 
in  advance  of  common  knowledge.  Being  also  an  ad- 
ministrative branch,  it  should  carry  over  promptly  the 
results  of  scientific  investigation  into  their  practical  ap- 
plication. Its  function  of  the  police  power  is  the  power 
of  reasonable  regulation  through  constructive  investiga- 
tion. 

The  legal  doctrine  of  reasonableness  provides  ample 
opportunity  for  protective  legislation  if  once  its  principles 
and  procedure  are  complied  with.  It  requires  that  all 
of  the  facts  must  be  considered  and  weighed  "  as  may  be 
just  and  right  in  each  case."  It  prohibits  class  legis- 
lation, but  permits  classification.  The  one  is  based  on 
merely  private  or  class  benefit,  the  other  on  public 
benefit  ascertained  by  investigation.  While  permitting 
reasonable  classification  it  requires  equal  treatment  of 
all  in  the  same  class.  Its  conclusions  must  be  practical 
under  existing  conditions. 

The  procedure  for  securing  these  standards  is  well 
known  to  the  law.  It  centres  on  the  main  require- 
ment that  all  parties  affected  shall  have  opportunity 
to  be  heard,  and  when  this  is  complied  with,  the  findings 
of  the  properly  constituted  board  or  commission  become 
prima  facie  the  facts  of  the  case  and  the  reasonable 
regulation  to  be  enforced.  Its  findings  are  the  con- 
clusive results  of  constructive  investigation. 

Thus,  in  addition  to  the  legislature  expressing  the 
general  will,  the  judiciary  testing  it  by  Its  political 
philosophy  of  the  constitution,  and  the  executive  en- 
forcing it,  we  have  the  administrative  branch  of  govern- 
ment investigating  its  application  to  existing  conditions 
in  the  light  of  existing  science  and  practice,  for  the  in- 
formation of  all  branches  of  government. 


400  LABOR   AND   ADMINISTRATION 

The  several  states  and  the  federal  Congress  have  re- 
cently sought  in  various  fields  to  elevate  this  work  of 
investigation  to  the  high  position  in  our  frame  of  govern- 
ment that  the  courts  had  assigned  to  it  in  the  procedure 
of  government.  The  legislatures  had  previously  from 
time  to  time  broken  up  the  executive  department  by 
creating  separate  departments  to  execute  specific  com- 
mands of  the  legislature.  Usually  a  single  officer 
was  placed  at  the  head  of  each  of  these  departments, 
until  a  great  variety  of  minor  executives  had  arisen, 
such  as  the  health  officer,  the  factory  inspector,  the  rail- 
road commissioner  and  so  on. 

At  the  same  time  the  legislature  attempted  to  enu- 
merate in  detail  the  things  that  each  officer  should  do 
and  each  citizen  obey.  Two  difficulties  appeared.  The 
courts  often  declared  these  elaborate  laws  unconstitutional, 
as  being  unreasonable,  and  the  executives  were  restrained 
from  dealing  with  any  specific  evil  that  the  legislature 
had  failed  to  enumerate.  These  difficulties  first  ap- 
peared in  the  health  department,  and  the  legislatures 
proceeded  to  change  the  character  of  that  department 
by  creating  a  board  of  physicians,  with  power  to  issue 
orders  based  on  their  expert  knowledge  and  having  the 
force  of  law,  though  not  enumerated  in  the  law.  Next, 
in  the  regulation  of  railroads,  instead  of  the  detailed 
schedules  of  rates  that  characterized  the  early  granger 
laws,  the  legislatures  advanced  to  the  position  which 
culminated  in  the  railroad  and  public  utility  laws  of 
Wisconsin,  —  of  merely  declaring  (what  the  courts  had 
already  declared)  that  rates  and  services  should  be 
"  reasonable,"  but  creating  a  commission  with  powers  of 
investigation  equal  to  those  of  the  courts,  to  discover 
and  announce  in  each  case  as  it  arose  what  was  the  reason- 


INVESTIGATION  AND   ADMINISTRATION    401 

able  rate  or  service.  Where  the  investigations  of  the 
courts  are  limited  by  the  technical  rules  of  testimony, 
the  commission  can  investigate,  on  its  own  initiative 
and  in  its  own  way,  all  the  circumstances  that  it  con- 
siders relevant.  In  fact,  the  commission  is  made  a  kind 
of  standing  referee  of  the  court,  directed  by  the  legis- 
lature to  report  all  of  the  facts  that  go  to  determine  what 
is  reasonable.  Instead  of  a  referee  appointed  by  the 
court,  usually  a  lawyer  with  the  lawyer's  limitations  as 
to  the  relative  value  of  different  facts,  the  commission 
is  a  body  of  men  compelled  by  their  duties  to  give  weight 
to  social  and  economic  facts  that  otherwise  do  not  get 
before  the  court. 

Wisconsin  now  has  ventured  to  adopt  this  same  prin- 
ciple in  matters  of  labor  legislation.  The  occasion  grew 
out  of  the  adoption  of  a  workmen's  compensation  law, 
wherein  it  was  deemed  necessary  to  create  a  state  In- 
dustrial Accident  Board  with  power  to  decide  all  disputed 
claims  for  compensation.  These  claims,  in  the  Wisconsin 
law,  are  not  specific  amounts  for  enumerated  injuries,  but 
are  a 'certain  proportion  of  the  loss  in  wages.  The  ac- 
cident board  was  made  the  investigating  body  to  as- 
certain the  actual  loss  in  each  case  where  appeal  was 
made,  and  to  make  an  award  on  that  basis.  ^ 

At  the  same  time  it  was  realized  that  compensation    I 
should  not  be  merely  a  new  kind  of  employer's  liability,    j 
but  should  be  an  additional  means  of  preventing  acci-    \ 
dents.     Consequently,     the    legislature    proceeded    to 
abolish  the  old  bureau  of  factory  inspection,  as  well  as 
the  Industrial  Accident  Board,  which  it  had  just  created, 
and  to  merge  the  two  into  a  new  administrative  and  in- 
vestigating board,  to  be  known  as  the  Industrial  Com- 
mission.    Instead  of  the  long  list  of  dangerous  points, 

2D 


402  LABOR  AND   ADMINISTRATION 

such  as  set  screws,  belts,  fire  escapes,  dust,  etc.,  which 
successive  legislatures  had  accumulated  during  the  past 
thirty  years,  the  new  law  expresses  the  general  will  in 
the  most  general  way,  as  the  duty  of  the  employer  to 
safeguard  the  life,  health,  safety  and  welfare  of  employees 
and  frequenters,  and  the  duty  of  employees  to  cooperate 
with  their  employers. 

The  law  applies  as  broadly  as  possible,  not  to  enu- 
merated factories,  shops,  etc.,  but  to  all  "places  of  employ- 
ment," except  agricultural  and  domestic  employments 
not  using  mechanical  power.  In  effect,  all  physical 
property  used  to  furnish  employment  to  labor  is  declared 
to  be  "  affected  by  a  public  use,"  and  must  be  so  man- 
aged as  to  promote  the  public  welfare  in  the  persons  of 
those  who  come  within  its  zone  of  danger. 

The  definition  of  safety  is  not  that  of  the  "  ordinary  " 
safety  of  the  common  law,  but  "  such  freedom  from  dan- 
ger to  the  life,  health  or  safety  or  welfare  of  employees  or 
frequenters,  as  the  nature  of  the  employment  will  reason- 
ably permit."  The  definition  of  welfare  is  "  comfort, 
decency  and  moral  well-being." 

Here,  then,  is  the  field  of  investigation  assigned  to  the 
commission.  It  must  call  to  its  aid  scientific  experts 
in  engineering  and  hygiene.  It  must  ascertain  where 
danger  lies  and  where  life,  health,  safety  and  welfare 
are  menaced.  It  must  discover  the  devices,  processes 
and  management  that  will  avoid  these  dangers,  and  must 
ascertain  whether  they  are  practicable.  This  is  the 
constructive  investigation  that  conforms  to  reasonable- 
ness. Once  ascertained  and  published  as  an  "  order  " 
of  the  commission,  the  conclusions  of  its  investigations 
have  the  force  of  law,  the  will  of  the  legislature  is  exe- 
cuted, the  philosophy  of  the  court  is  observed. 


INVESTIGATION  AND   ADMINISTRATION    403 

As  a  matter  of  economy  to  the  state  and  convenience 
to  employers,  as  well  as  recognition  of  the  wide  scope  of 
administrative  investigation,  all  of  the  departments 
dealing  with  employees  and  employment  were  consoli- 
dated under  the  same  commission.  These  include  the 
state  employment  offices,  the  board  of  arbitration,  child 
labor,  street  trades,  truancy,  women's  hours  of  labor, 
apprenticeship,  etc.  In  the  matter  of  employment  the 
commission  is  authorized  to  use  all  of  its  power  to  elim- 
inate unemployment,  by  the  establishment  of  free  offices, 
supervision  of  private  agencies,  cooperation  with  agen- 
cies for  vocational  and  industrial  education,  etc.  In  the 
matter  of  arbitration  it  is  limited  to  voluntary  con- 
ciliation, with  powers  of  compulsory  investigation.  The 
legislature  did  not  go  so  far  as  to  authorize  the  commis- 
sion to  investigate  and  determine  reasonable  hours  of 
labor  for  women  and  children,  apart  from  the  rigid  limits 
laid  down  in  the  law,  so  that  the  procedure  described  in 
this  article  applies  mainly  to  life,  health,  safety,  welfare 
and  compensation,  with  limited  application  to  unem- 
ployment, conciliation  and  street  trades.1 

In  the  matter  of  organization  such  combination  of 
duties  as  deliberation,  investigation,  hearings,  findings 
of  fact  and  execution  of  laws  suggests  a  board  or  com- 
mission of  more  than  one  member,  acting  jointly,  instead 
of  the  single  head  of  an  executive  department.  Although 
each  matter  is  determined  jointly,  yet  each  requires  to 
be  handled  from  the  three  standpoints  of  legality,  in- 
vestigation and  execution.  The  members  cannot  be 
experts  in  all  the  technical  fields  of  engineering,  hygiene, 

1  The  legislature  of  1913  extended  the  same  principle  to  the  regulation 
of  women's  hours  of  labor,  prohibited  employments  for  minors,  private 
employment  offices  and  public  buildings. 


404  LABOR  AND   ADMINISTRATION 

sanitation  and  so  on,  but  they  certainly  must  be  capable 
of  conducting  investigations  and  determining  their  scope 
and  the  legality  of  their  action,  as  well  as  organizing 
and  handling  a  field  force  of  inspectors  and  deputies. 
The  Industrial  Commission  law  leaves  to  the  governor 
and  senate  a  wide  range  of  selection,  in  that  the  specific 
qualifications  of  commissioners  are  not  prescribed,  but 
the  selections  actually  made  at  the  inauguration  of  the 
present  commission  have  been  made  with  this  threefold 
division  of  law,  investigation  and  execution  in  mind. 

It  goes  without  saying  that  the  selection  of  commis- 
sioners, and  the  selection  of  subordinates  are  the  two 
decisive  factors  that  determine  the  success  or  failure  of 
administration.  Wisconsin  has  had  for  seven  years  a 
Civil  Service  Commission,  and  nearly  all  of  the  employees 
of  the  Industrial  Commission  were  placed  under  the 
provisions  of  the  civil  service  law.  This  has  worked  to 
advantage,  although  the  Industrial  Commission  law  has 
required  a  reversal  of  the  original  theory  of  civil  service 
examinations.  Instead  of  classified  positions  and  sal- 
aries fixed  by  the  legislature,  the  Industrial  Commission 
fixes  the  compensation  of  its  employees,  makes  its  own 
classification  and  transfers  employees  from  one  class  to 
another.  The  legislature  creates  but  two  positions,  that 
of  "  deputies  "  and  that  of  clerks.  The  intention  is  to 
substitute  for  the  competition  of  candidates  for  a  job 
fixed  by  the  legislature,  the  opposite  process  of  competing 
against  other  employers  for  the  services  of  employees  fitted 
for  positions  which  the  commission  creates.  The  civil 
service  law  is  indispensable,  in  that  it  offers  a  permanent 
tenure  similar  to  that  of  private  employment.  It  ob- 
structs, if  conducted  in  such  a  way  that  those  who  are 
doing  the  best  work  for  private  employers  are  unwilling 


INVESTIGATION  AND   ADMINISTRATION    405 

to  become  candidates  in  a  formal  examination  for  a 
public  office.  The  Civil  Service  Commission  of  Wisconsin 
adapts  its  examinations  to  these  conditions,  so  that 
through  cooperation  of  the  two  commissions,  the  dep- 
uties of  the  Industrial  Commission  are  coming  to  have 
the  full  confidence  of  employers  and  employees  as  prac- 
tical men. 

This,  it  will  be  seen,  is  essential  in  the  conduct  of 
investigations  and  the  administration  of  orders  that  shall 
comply  with  the  doctrine  of  reasonableness.  When  the 
commission  began  its  work  of  selecting  its  staff,  it  had 
entertained  the  idea  that  it  should  place  at  the  head  of 
its  safety  and  sanitation  work  engineering  and  medical 
experts.  But  after  interviewing  a  number  of  these 
experts  it  was  discovered  that  they  considered  their 
problem  to  be  that  of  drawing  up  ideal  or  standard  speci- 
fications, which  the  commission,  going  out  then  with  a 
"  big  stick,"  should  compel  employers  to  adopt. 

For  two  reasons,  this  was  decided  to  be  impossible.  A 
monarchical  country,  like  Germany,  with  its  executive 
independent  of  political  changes,  might  call  in  its  experts 
and  be  governed  by  them,  but  a  democratic  country 
would  not  consent  to  be  ruled  by  those  whose  ideal 
standards  might  be  removed  from  the  everyday  con- 
ditions of  business.  This  decision  of  the  commission 
also  conforms  to  the  doctrine  of  reasonableness,  which 
requires  practicability  adapted  to  existing  conditions. 
It  was  found  that  most  of  the  successful  work  in  safety 
and  sanitation  during  the  past  ten  years  had  not  been 
in  charge  of  technical  engineers,  but  had  been  in  charge 
of  shopmen  or  even  claim  agents  of  the  corporation; 
and  their  success  had  come  about,  not  mainly  through 
their  knowledge  as  mechanical  experts,  but  through  their 


4o6  LABOR   AND   ADMINISTRATION 

ability  to  get  the  services  of  engineers  and  medical  men 
when  needed,  and  especially  their  ability  to  get  the  co- 
operation of  superintendents,  foremen  and  workmen  in 
a  united  effort  to  stop  accidents  and  preserve  health. 
In  other  words,  they  were  experts  in  arousing  the  spirit 
of  "  safety  first  "  and  in  organizing  the  shop  so  as  to 
keep  that  spirit  on  top.  For,  scarcely  a  third  of  the 
accidents  can  be  prevented  merely  by  mechanical  safe- 
guards—  at  least  two-thirds  must  be  prevented  by 
attention,  instruction  and  discipline.1 

It  is  also  this  spirit  of  safety  among  the  shopmen  that 
brings  out  the  most  effective  safeguards  —  effective  in 
the  sense  of  full  protection  without  interfering  with 
output.  The  engineer  can  devise  safeguards  —  he  needs 
the  shopman  to  safeguard  the  output.  The  "  safety 
expert  "  is  the  one  who  can  bring  these  two  elements 
together,  and  thus  work  out  the  practical  rules  for  the 
commission  to  adopt.  He  guides  the  investigators,  who 
determine  what  is  "  reasonable  "  both  in  the  shop  and 
in  court.  It  is  for  this  reason  that  the  Wisconsin  Com- 
mission has  not  been  able  to  follow  the  remarkable  and 
extensive  safeguards  devised  and  enforced  in  Germany. 
They  seem  to  lack  that  element  of  practicability,  which 
the  shopman,  as  distinguished  from  the  technical  expert, 
insists  upon. 

But  in  the  arrangement  finally  decided  upon,  the  scien- 
tist, the  engineer,  the  physician,  the  sanitarian,  who  are 
the  technical  experts,  are  called  in  and  utilized,  just  as 
they  are  in  private  employment,  when  their  services 
are  needed  and  when  the  practical  men  have  problems 
beyond  their  technical  knowledge.  If,  however,  the 

1  The  commission  has  begun  a  promising  campaign  among  employers 
and  workmen  to  secure  "shop  organization  for  safety." 


INVESTIGATION  AND   ADMINISTRATION    407 

scientists  dominated  the  investigations,  their  results, 
however  brilliant  and  conclusive,  might  not  be  reason- 
able. Their  investigations  are  indispensable  and  fun- 
damental, and  must  be  taken  into  account  and  should 
be  liberally  provided  for.  But,  unless  they  lead  to 
practicability,  which  only  can  be  supplied  by  the  prac- 
tical man,  they  run  the  risk  of  unconstitutionally.  It 
is  for  this  reason  that  the  representative  of  the  Wis- 
consin Commission,  at  the  meeting  of  the  section  on 
hygiene  of  occupations  of  the  recent  International  Con- 
gress on  Hygiene  and  Demography,  resisted  the  proposed 
resolution  of  turning  over  all  investigations  of  industrial 
hygiene  to  medical  men.  A  similar  resolution  had  been 
adopted,  naturally  enough,  at  a  previous  session  held 
in  Europe.  The  American  delegates  were  willing  to 
accept  the  substitute  that  investigations  in  physiology 
and  pathology  should  be  entrusted  to  medical  men,  but 
this  substitute  was  not  approved  by  the  permanent 
commission.  Constructive  investigation  differs  from 
scientific  investigation  in  that  it  must  be  guided  towards 
practical  ends  under  existing  conditions.  The  distinc- 
tion is  vital  in  America,  if  not  in  Europe,  for  that  which 
is  scientific  may  be  unconstitutional,  because  not  reason- 
ably practical. 

But  the  selection  of  a  proper  staff  is  not  enough  to 
insure  practicability.  The  Wisconsin  law  authorizes 
the  commission  to  appoint  "  advisors  "  without  com- 
pensation, to  assist  the  commission  in  any  of  its  duties. 
Acting  on  this  authority,  the  commission  invites  the 
Wisconsin  Manufacturers' Association  and  the  Merchants' 
and  Manufacturers'  Association  of  Milwaukee,  as  well  as 
other  associations  of  special  trades,  such  as  the  master 
bakers,  the  woodworkers,  etc.,  to  name  representatives; 


408  LABOR   AND   ADMINISTRATION 

also  the  Wisconsin  State  Federation  of  Labor,  the  em- 
ployers' liability  insurance  companies  and  the  Wisconsin 
Employers'  Mutual  Liability  Company  organized  in 
Wisconsin  after  the  German  model  under  the  compensa- 
tion law ;  and  in  addition  the  commission  invited  certain 
corporations  which  had  done  the  best  safety  work  in  the 
state  to  permit  their  safety  experts  to  meet  with  the 
committees.  The  commission  also  secured  the  assist- 
ance of  physicians  on  special  subjects,  of  the  chief  sani- 
tary officers  of  the  cities  of  Milwaukee  and  Chicago, 
of  the  State  Board  of  Health,  the  State  Hygienic  Lab- 
oratory and  representatives  of  the  Consumers'  League 
and  the  State  Federation  of  Women's  Clubs.  These 
various  representatives  were  grouped  into  a  main  Com- 
mittee on  Safety  and  Sanitation,  with  sub-committees 
on  boilers,  elevators,  bakeries,  sanitation  and  so  on, 
and  deputies  of  the  commission  were  assigned  to  work 
with  them.  In  this  way  the  commission  has  had  the 
assistance  of  scientific  experts,  of  representatives  of  the 
interests  affected  by  the  orders  to  be  issued,  represent- 
atives of  the  public  as  consumers,  representatives  of 
overlapping  agencies  such  as  insurance  companies  and 
boards  of  health,  and  its  own  experts. 

This  has  brought  to  the  commission  the  assistance  of 
some  of  the  leading  men  of  the  state  in  their  several 
lines  of  work.  These  men  have  given  an  astonishing 
amount  of  time,  at  their  own  expense,  which,  if  paid  for  at 
commercial  rates,  would  have  required  an  expenditure 
far  beyond  the  appropriation  which  the  legislature  al- 
lowed to  the  commission.  Such  men  have  looked  upon 
their  work  not  merely  as  a  public  service,  but  mainly 
as  a  vital  matter  in  the  future  conduct  of  manufacturing 
in  the  state.  The  following  partial  list  of  these  advisory 


INVESTIGATION  AND   ADMINISTRATION    409 

committees  indicates  the  wide  range  of  representative 
expert  and  practical  men  to  whom  the  commission  and 
the  state  are  indebted  for  this  fundamental  part  of  its 
work : 

Committee  on  Safety  and  Sanitation :  Representing  Wisconsin 
State  Federation  of  Labor:  Joseph  Gressler,  machinist,  Mil- 
waukee; George  Krogstad,  patternmaker,  Milwaukee. 

Representing  Milwaukee  Merchants'  &  Manufacturers'  Associa- 
tion: Charles  P.  Bossert,  Pfister  &  Vogel  Leather  Company; 
Edward  J.  Kearney,  Kearney  &  Trecker  Company  (machinery), 
chairman  of  committee. 

Representing  Milwaukee  Health  Department:  Joseph  D  erf  us, 
chief  sanitary  inspector. 

Representing  Wisconsin  Manufacturers'  Association:  Thomas 
McNeill,  Sheboygan  Chair  Company,  Sheboygan ;  H.  W.  Bolens, 
Gilson  Manufacturing  Company  (engines),  Port  Washington. 

Representing  Employers'  Mutual  Liability  Company,  Wausau : 
W.  C.  Landon  (lumber),  Wausau. 

Representing  Industrial  Commission  of  Wisconsin:  John  W. 
Mapel,  Pfister  &  Vogel  Leather  Company;  Fred  W.  McKee, 
Fairbanks-Morse  Company  (engines),  Beloit;  Ira  L.  Lockney, 
deputy  to  the  Industrial  Commission;  C.  W.  Price,  assistant  to 
the  Industrial  Commission  and  secretary  of  the  committee. 

Sub-committee  on  Elevators :  C.  F.  Ringer,  inspector  of  build- 
ings, City  of  Milwaukee;  Otto  Fischer,  inspector  of  elevators, 
City  of  Milwaukee ;  P.  Jermain,  Otis  Elevator  Company ;  F.  A. 
Barker,  inspector  of  safety,  ^Etna  Life  Insurance  Company ;  G.  N. 
Chapman,  inspector  of  safety,  Travellers'  Insurance  Company; 
John  Humphrey,  deputy  to  Industrial  Commission ;  C.  W.  Price, 
assistant  to  Industrial  Commission. 

Sub-committee  on  Boilers:  Theodore  Vilter,  superintendent 
Vilter  Manufacturing  Company  (boilers) ;  W.  D.  Johnson,  sec- 
retary, Milwaukee  Boiler  Company ;  H.  F.  Bowie,  boiler  inspector, 
Hartford  Steam  Boiler  Insurance  &  Inspection  Company ;  J.  Hum- 
phrey, deputy  to  Industrial  Commission ;  R.  Kunz,  chief  examiner 
and  inspector  of  stationary  engines,  Board  of  Examiners  of  Mil- 
waukee. 

Sub-committee  on  Electricity:   Walter  Nield,  chief  electrician 


4io  LABOR  AND  ADMINISTRATION 

Illinois  Steel  Company,  Milwaukee;  Charles  Dietz,  chief  electri- 
cian, Commonwealth  Power  Company,  Milwaukee;  Thomas  E. 
Barnum,  chief  electrician  of  a  company  making  controlling  ap- 
paratus, and  chairman  of  the  Electric  Engineers'  Society  of  Mil- 
waukee; P.  A.  Schroeder  and  W.  S.  Gute,  State  Federation  of 
Labor. 

Sub-committee  on  Sanitation :  Fred  Swartz,  Pfister  &  Vogel 
Leather  Company,  Milwaukee;  H.  W.  Page,  Sturtevant  Company ; 
A.  W.  Ruttan,  Metal  Polishers'  Union,  Milwaukee;  C.  B.  Ball, 
chief  sanitary  inspector,  Board  of  Health,  Chicago. 

Committee  on  Safety  Exhibit :  Walter  Goll,  factory  manager, 
Fort  Wayne  Electric  Works,  Madison ;  Hobart  S.  Johnson,  vice- 
president,  Gisholt  Machine  Company,  Madison;  Frank  C. 
Niebuhr,  Carpenters'  Union,  Madison. 

Committee  on  Bakeries :  Frank  Schieffer,  Association  of  Master 
Bakers,  Milwaukee;  August  Schmitt,  Association  of  Master 
Bakers,  Milwaukee;  M.  H.  Carpenter,  Wisconsin  Association  of 
Master  Bakers,  Milwaukee;  R.  Colvin,  Wisconsin  Wholesale 
Bakers'  Association,  Janesville;  C.  B.  Ball,  chief  sanitary  inspec- 
tor, Board  of  Health,  Chicago;  C.  J.  Kremer,  bakery  inspector, 
Industrial  Commission. 

These  committees  proceed  to  make  their  investigations, 
to  draw  up  tentative  rules  and  to  submit  them  to  the 
commission  for  public  hearings.  After  the  hearings, 
the  rules  are  referred  back  to  the  committee  for  further 
investigation,  and  finally,  as  rapidly  as  completed,  are 
issued  by  the  commission  as  "  General  Orders  "  apply- 
ing to  the  entire  state,  and  are  published  in  the  official 
paper  and  in  the  Bulletins  of  the  commission. 

The  commission  has  also  been  greatly  aided  by  the 
United  States  Bureau  of  Labor,  which  made  investiga- 
tions of  laundries  and  pea  canning  establishments  in  the 
state,  availing  itself  of  contemporaneous  investigations 
made  by  the  commission.  The  bureau's  investigation 
of  course  had  reference  to  the  adoption  of  rules  that 
would  be  applicable  to  all  the  states.  These  investiga- 


INVESTIGATION  AND   ADMINISTRATION    411 

tions  suggest  an  invaluable  arrangement  that  might 
be  made  by  which  the  federal  bureau  could  furnish  scien- 
tific experts  and  investigators  whose  work  would  be  at 
the  disposal  of  the  states.  The  latter  are  not  always  in 
position  to  carry  on  systematically  this  line  of  investi- 
gation, and  if  they  should  do  so  the  great  object  of  uni- 
formity throughout  all  the  states  would  not  be  sufficiently 
cared  for.  Besides,  the  federal  bureau,  not  being  en- 
cumbered with  administrative  duties,  is  in  a  position  to 
carry  on  scientific  investigations,  which  would  be  all 
the  more  valuable  when  directed  towards  the  construc- 
tive needs  of  the  state  departments.  ^_ 
The  fact  that  both  the  law  and  the  commission  con- 
templated the  cooperation  of  employers  and  employees, 
has  resulted  in  a  code  of  rules  which  are  not  only  reason- 
able in  law  but  reasonable  in  the  minds  of  employers. 
It  is  an  application  of  the  well-recognized  principle  of 
political  economy  that  the  competition  of  the  worst 
employers  tends  to  drag  down  the  best  employers  to 
their  level.  In  this  case,  however,  the  corollary  law  is 
brought  into  play.  The  most  progressive  employers 
in  the  line  of  safety  and  sanitation  draw  up  the  law,  and 
the  business  of  the  commission  is  to  go  out  and  bring 
the  backward  ones  up  to  their  level.  As  a  matter  of 
fact,  it  has  been  found  that  the  employers  on  the  com- 
mittees have  been  more  exacting  in  their  search  for  the 
highest  practicable  standards  than  the  representatives 
of  labor  on  the  committees.  As  a  consequence,  the 
work  of  the  commission  in  bringing  other  employers  up 
to  their  level  has  been  almost  entirely  transformed  from 
what  they  consider  an  irritating  and  arbitrary  inter- 
ference in  their  business,  into  a  work  of  instruction  and 
education.  The  employer  who  resists  the  adoption  of 


412  LABOR  AND   ADMINISTRATION 

safeguards  and  processes  approved  by  his  fellow-employers 
is  not  only  unreasonable  in  the  opinion  of  his  peers,  but 
prima  facie  unreasonable  in  court. 

The  work  of  education  which  the  commission  has 
naturally  resorted  to  has  been  that  of  bringing  to  the 
attention  of  employers  not  only  the  rules  but  the  devices 
and  methods  which  will  comply  with  them.  A  safety 
exhibit,  or  rather  a  triplicate  exhibit,  after  being  passed 
upon  by  an  advisory  committee,  has  been  inaugurated. 
It  consists  of  photographs  and  blue  prints,  and  is  trans- 
ported with  the  inspectors  on  their  rounds  over  the  state. 
This  exhibit  is  installed  in  a  public  place  during  the 
period  of  local  inspection,  and  one  of  the  exhibits  is 
kept  permanently  in  the  rooms  of  the  Merchants'  and 
Manufacturers'  Association  of  Milwaukee.  It  is  found 
that  these  photographic  exhibits  have  a  certain  advan- 
tage over  the  "  museums  of  safety  "  of  European  coun- 
tries, where  the  actual  machines  with  safeguards  are 
installed  permanently  in  a  building,  because,  not  only 
is  the  expense  reduced,  but  the  exhibit  can  be  carried 
almost  to  the  doors  of  the  employer  and  his  superin- 
tendents, foremen  and  mechanics.  The  commissioners 
and  their  deputies  usually  arrange  for  an  evening  of 
lectures  in  connection  with  the  exhibit,  when  the  various 
laws  are  explained  and  questions  answered.  These  are 
attended  by  representatives  of  practically  all  the  em- 
ploying establishments  in  the  town  and  surrounding 
country.  The  exhibit  itself  is  built  up  and  improved  by 
photographs  which  the  deputies  take  on  their  rounds, 
and  the  main  object  is  to  arouse  the  "  safety  spirit  " 
and  to  show  how  practicable  it  is  for  establishments  to 
devise  and  install  their  own  safeguards  without  depend- 
ing too  much  on  patented  articles. 


INVESTIGATION  AND   ADMINISTRATION    413 

The  way  in  which  this  conversion  of  an  executive 
department  into  a  department  of  investigation  and  edu- 
cation appeals  to  the  employers  of  the  state,  may  be 
judged  by  the  following  extract  from  a  speech  made  by 
William  George  Bruce,  secretary  of  the  Merchants'  and 
Manufacturers'  Association  of  Milwaukee,  before  the 
National  Congress  on  Safety  and  Sanitation,  October 
i,  1912: 

The  success  which  has  been  attained  in  Wisconsin  on  the  sub- 
ject of  safety  and  sanitation  is  due  not  only  to  a  good  law,  but  also 
to  a  wise  administration  of  the  same.  The  authorities  approached 
their  difficult  task  in  a  spirit  of  absolute  fairness.  But,  they  did 
more.  They  drew  the  manufacturers  into  their  confidence  and 
secured  their  loyal  cooperation  in  the  administration  of  the  law. 

They  assumed  that  the  manufacturer  is  a  law-abiding  citizen 
and  that  if  he  were  asked  to  give  meaning  and  force  to  the  new  law 
he  would  respond.  The  attitude  which  the  Industrial  Commission 
maintained  through  the  introductory  period  of  their  exacting  and 
herculean  task  was  bound  to  be  followed  by  success. 

But  the  commission  practised  wisdom  also  in  bringing  to  its 
work  experts  of  character  and  efficiency.  Favoritism  was  cast 
to  the  winds.  The  men  best  fitted  for  the  task  were  selected. 

Men  like  Mr.  Crownhart  and  Mr.  Beck  of  the  commission 
realized  that  an  antagonistic  or  arbitrary  spirit  would  be  resented 
and  cause  difficulty.  They  were  tactful  and  discreet,  but  made  it 
absolutely  plain  that  both  the  spirit  and  the  letter  of  the  law  must 
be  carried  out.  Would  the  manufacturer  lend  his  cooperation? 
And  he  did. 

Men  like  Mr.  Price,  capable  and  judicious,  formerly  at  the  head 
of  similar  work  with  the  International  Harvester  Company,  were 
chosen  to  perform  the  delicate  and  difficult  task  of  working  out, 
together  with  the  manufacturer,  a  reasonable  and  workable  pro- 
gramme. 

They  not  only  succeeded  in  creating  a  cooperatve  attitude 
on  the  part  of  the  manufacturers,  but  they  also  secured  \nuch 
valuable  time  and  effort  at  the  hands  of  some  of  the  most  important 
manufacturers  in  the  state. 


414  LABOR  AND   ADMINISTRATION 

Thus  I  am  safe  in  saying  the  work  of  industrial  safety  and 
sanitation  in  Wisconsin  which  is  progressing  in  a  most  successful 
manner,  has  the  good  will  and  support  of  the  manufacturing  in- 
terests of  the  state. 

The  legal  effect  of  the  commission's  orders  turns  upon 
the  constitutional  position  which  belongs  to  constructive 
investigation.  These  orders  are  not  a  delegation  of 
legislative  power,  but  an  investigation  and  publication 
of  facts.  The  courts  have  long  held  that  the  legislature 
may  determine  that  a  given  law  shall  go  into  effect  at 
a  future  date  on  the  occurrence  of  a  specified  event.  The 
law  in  this  case  is  the  obligation  placed  on  employers  to 
protect  the  life,  health,  safety  and  welfare  of  employees. 
The  future  occurrence  when  it  takes  effect  is  thirty  days 
after  official  publication  of  the  findings  of  the  commis- 
sion. 

Neither  are  the  commission's  investigations  and  find- 
ings a  usurpation  of  the  authority  of  the  courts.  This 
is  cared  for  by  the  procedure.  Formerly  a  factory  in- 
spector issued  orders  on  the  spot,  and  prosecuted  for 
disobedience  in  the  trial  courts.  The  court  was  at 
liberty  to  raise  the  question  whether  the  order  was  nec- 
essary, or  whether  too  expensive  or  confiscatory,  or 
whether  the  manufacturer  was  not  as  competent  as  the 
inspector  to  determine  the  effectiveness  of  his  safeguards. 
Now  these  questions  of  reasonableness  cannot  be  raised 
in  the  trial  court.  Only  the  fact  of  compliance  or  non- 
compliance  can  be  raised.  If  the  question  of  reasonable- 
ness is  raised  it  must  come  up  in  an  action  against  the 
commission  in  the  county  court  at  the  state  capital,  and 
thence  in  the  supreme  court  of  the  state.  Furthermore, 
if  the  petitioner  introduces  evidence  which  was  not 
before  the  commission,  the  case  must  be  remanded  back 


INVESTIGATION  AND  ADMINISTRATION    415 

to  the  commission  with  the  new  evidence,  and  the  com- 
mission must  be  given  opportunity  to  change  its  order  if 
it  so  determines.  The  case  can  then  go  back  to  the 
court. 

In  this  way,  the  commission's  complete  power  of  in- 
vestigation is  protected,  its  orders  are  made  prima  facie 
reasonable,  and  the  burden  is  on  the  petitioner  to  break 
them  down  in  court.  The  court  retains  all  of  its  powers 
of  investigation  and  philosophy,  as  far  as  it  chooses  to 
use  them.  But  the  commission's  investigations  are 
not  limited  by  the  strict  rules  of  evidence  prevailing  in 
court.  It  can  consider  all  of  the  facts  without  objection. 
It  can  initiate  investigations.  It  is,  in  fact,  a  body  of 
social  and  economic  investigators,  rather  than  a  tribunal 
restricted  to  technical  rules  of  evidence.  The  supreme 
court  of  the  state  has  sustained  the  commission  so  far 
as  it  affects  procedure  under  the  compensation  law. 
The  procedure  respecting  safety  and  health  is  similar, 
but  has  not  as  yet  been  passed  upon,  although  in  the 
case  of  the  Railroad  Commission,  with  similar  procedure 
respecting  reasonable  rates  and  services,  its  findings  of 
fact  have  been  held  to  be  conclusive. 

The  Industrial  Commission  is  also  made  an  appellate 
administrative  court  in  all  cases  of  local  boards  of  health, 
common  councils  or  other  local  bodies  that  issue  orders 
on  places  of  employment.  Their  authority  to  issue  such 
orders  has  not  been  infringed  upon,  but  they  are  pro- 
tected against  court  injunctions  by  the  requirement  that 
appeal  shall  first  be  made  to  the  Industrial  Commission. 
The  latter,  on  investigation,  may  affirm  the  local  order, 
or  may  substitute  a  "  reasonable  one,"  and  the  petitioner 
must  then  proceed  against  the  commission  as  above 
explained,  in  place  of  the  local  authority.  The  com- 


416  LABOR  AND   ADMINISTRATION 

mission  has  endeavored  to  bring  about  agreement  with 
local  boards  by  securing  their  representatives  on  the 
advisory  committees  and  it  is  expected  in  this  way  that 
state  and  local  inspectors  will  not  issue  conflicting  orders 
on  employers. 

Advisory  committees  of  employers  and  employees  have 
also  been  enlisted  in  the  administration  of  the  free  em- 
ployment offices.  The  Milwaukee  committee  consists 
of  representatives  of  the  Manufacturers'  Association  and 
representatives  of  the  trade  unions.  They  assist  the 
Civil  Service  Commission  in  the  examination  of  appli- 
cants, and  have  thus  overcome  the  two  greatest  obstacles 
in  the  way  of  successful  operation  of  such  offices  by  the 
state  —  politics  and  trade  unions.  The  superintend- 
ents and  assistants  of  these  offices  are  not  only  removed 
from  political  influence,  but  are  removed  from  all  sus- 
picion of  using  their  position  for  or  against  employer  or 
employee  in  the  case  of  strikes.  The  growth  of  business 
transacted  by  the  Milwaukee  office  has  been  phenomenal 
during  the  first  year  of  this  method  of  management,  and 
its  transformation  from  a  mere  charitable  agency  to  find 
work  for  unemployables,  into  a  labor  exchange  bringing 
employer  and  employee  together,  is  evidenced  by  the 
following  statement  made  by  the  chairman  of  the  com- 
mittee and  representative  of  the  employers,  A.  T.  Van 
Scoy  of  the  International  Harvester  Company. 

I  was  not  particularly  enthusiastic  at  first  over  this  movement, 
but  have  changed  my  views  in  regard  to  it,  and  believe  it  has  been 
of  great  benefit  to  the  working  people  in  that  it  has,  through  what 
might  be  called  a  clearing-house,  enabled  them  to  obtain  employ- 
ment quickly  and  without  expense,  and  it  has  also  been  equally 
valuable  to  the  employer,  in  that  it  has  enabled  him  through  this 
employment  bureau  or  clearing-house  to  obtain,  usually  without 
effort  on  his  part  other  than  telephoning  his  wants,  the  help  desired. 


INVESTIGATION  AND   ADMINISTRATION    417 

Its  work  is  broadening  all  the  time,  employers  learning  that  an 
effort  is  made,  and  generally  successfully,  to  furnish  them  with  the 
kind  of  help  desired,  instead  of  sending  men  promiscuously,  and 
employees  learning  that  the  quickest  and  most  expeditious  way  for 
them  to  obtain  employment  is  through  the  bureau. 

The  opinion  of  the  trade  unions  is  represented  by  the 
following  statement  of  the  representative  of  the  Feder- 
ated Trades  Council : 

Without  blare  of  trumpets  the  free  state  employment  office 
in  Milwaukee  is  doing  one  of  the  best  works  at  present  going  on 
in  the  city.  It  is  supplying  a  head  centre  where  men  needing  work 
may  go  and  where  work  seeking  men  may  also  apply.  Its  offices 
on  Fourth  Street,  just  north  of  Grand  Avenue,  always  present  a 
busy  scene.  .  .  .  While  the  work  of  such  offices  seems  local,  the 
unemployed  problem  is  a  state-wide  problem  and  even  more,  and 
can  best  be  met  and  handled  as  it  is  now  being  handled  under  the 
Industrial  Commission  with  cooperating  offices  in  the  principal 
cities  of  the  state.  One  praiseworthy  thing  that  the  free  employ- 
ment office  has  done  must  not  be  overlooked.  It  has  cut  down  the 
crowds  of  hundreds  of  work-hungry  men  at  the  factory  gates  morn- 
ings. This  sort  of  a  scramble,  often  by  men  almost  despairing, 
with  families  waiting  to  learn  of  the  success  or  failure  of  the  quest, 
is  not  only  a  pathetic  sight,  but  often  downright  tragedy.  The 
free  employment  office  provides  the  better  way,  and  the  manufac- 
turers themselves  have  come  to  realize  it.  It  is  certainly  more 
humane  for  the  men,  saves  them  a  lot  of  tramping  and  is  a  great 
convenience  in  the  securing  of  workmen.  Nay,  more,  it  saves  his 
feelings,  for  it  is  found  that  the  rebuffs  that  he  gets  at  factory 
gates  have  a  souring  effect  on  a  man  in  spite  of  himself. 

A  peculiar  use  of  advisory  committees  has  been  under- 
taken in  the  administration  of  the  street  trades  law  in 
Milwaukee.  The  law  is  supplementary  to  the  child 
labor  law  in  that  the  children  concerned  are  mainly  not 
employees  but  are  merchants,  and  therefore  without 
employers  who  can  be  held  liable  for  violation  of  the 
child  labor  and  truancy  laws.  The  newsboys,  numbering 

2E 


4i8  LABOR  AND   ADMINISTRATION 

about  4000,  have  been  organized  in  the  "  Newsboys' 
Republic  "  for  the  purpose  of  enforcing  the  law.  The 
Republic  itself,  including  certain  adults  chosen  jointly 
by  the  boys  and  the  commission,  constitute  a  lively  ad- 
visory committee  to  the  commission.  The  plan  is  only 
now  in  process  of  installation,  after  careful  investigation 
had  been  made  of  the  administration  of  similar  laws,  and 
especially  of  the  similar  organization  in  Boston. 

In  the  administration  of  the  new  apprenticeship  law, 
supplementing  the  industrial  education  law,  the  com- 
mission is  aided  by  a  committee  of  the  Manufacturers' 
Association  and  the  labor  unions. 

Wherever  practicable,  the  commission  has  found  that 
these  advisory  committees  are  invaluable  in  the  enforce- 
ment of  laws  under  its  charge.  They  are  being  extended 
wherever  it  is  found  that  the  commission  needs  the 
cooperation  of  the  classes  affected  by  the  administra- 
tion of  the  law  or  their  judgment  upon  the  reasonable- 
ness of  its  orders.  It  will  be  seen,  too,  that  this  practice 
meets  the  political  objection  against  the  multiplication 
of  commissions  and  "  government  by  commissions." 
The  Industrial  Commission  consolidates  what  otherwise 
might  be  three  or  four  commissions  and  executives,  thus 
reducing  the  expense.  It  does  not  remove  government 
"  from  the  people  "  and  place  it  in  the  hands  of  "  ex- 
perts," for  it  necessarily  and  actually,  both  in  full  com- 
pliance with  the  doctrine  of  reasonableness  and  in  secur- 
ing full  cooperation  of  the  public  in  understanding  and 
enforcing  the  laws,  brings  the  government  directly  into 
the  hands  of  the  people.  It  is  certain  that  the  state 
must  have  executives  in  order  to  enforce  the  labor  laws, 
as  well  as  other  laws.  To  object  to  them  is  like  urging 
your  son  to  learn  to  swim  but  forbidding  him  to  go  near 


INVESTIGATION  AND   ADMINISTRATION    419 

the  water.  The  real  question  is  not  how  to  avoid  com- 
missions, but  how  to  organize  them,  how  to  do  away  with 
overlapping  commissions,  how  to  make  them  efficient 
and  economical,  how  to  keep  them  near  to  the  actual 
life  of  the  people ;  in  short,  how  to  make  them  the  branch 
that  fills  the  gap  of  constructive  investigation  in  our 
scheme  of  government. 

It  has  been  suggested  by  inquirers  from  other  states, 
and  it  might  be  inferred  from  the  emphasis  here  laid  on 
investigation,  that  the  executive  part  of  the  commis- 
sion's work  should  be  kept  separate  with  a  single  head, 
as  it  has  been  in  the  past,  in  order  to  centre  responsibility 
for  the  enforcement  of  laws.  In  that  case  a  board  of 
experts  might  be  created  for  the  purpose  of  investigating 
and  drafting  the  rules,  which  the  independent  executive 
would  be  required  to  enforce.  For  several  reasons,  this 
separation  of  departments  would  probably  be  imprac- 
ticable. The  most  valuable  agents  for  the  kind  of  in- 
vestigation required  are  the  inspectors,  whose  duty  it  is 
to  enforce  the  rules.  By  associating  them  with  the 
advisory  committees,  they  enter  into  the  spirit  of  co- 
operation, they  learn  the  principle  of  reasonableness 
and  they  acquire  the  virtue  of  tact.  If  they  have  no 
knowledge  of  the  reasons  for  the  rules,  and  therefore  no 
reason  for  patient  instruction  of  employers  and  super- 
intendents, their  attitude  is  likely  to  be  that  of  the  typi- 
cal factory  inspector  who  says  to  the  employer,  "  Well, 
I  didn't  make  the  law  —  there  it  is,  and  you've  got  to 
obey  it."  Instead  of  inspiring  the  "  safety  spirit " 
throughout  the  state,  they  stir  up  needless  opposition 
and  friction  between  the  factory  inspector  and  the  board 
of  experts. 

Furthermore,  no  system  of  general  rules  laid  down  in 


420  LABOR  AND   ADMINISTRATION 

advance  can  anticipate  all  of  the  special  conditions  or 
obstacles  in  the  way  of  enforcement.  The  Wisconsin 
law  cares  for  this  by  means  of  "  special  orders  "  in  addi- 
tion to  "  general  orders."  But  these  special  orders  can 
only  be  issued  on  investigation  and  public  hearing,  pre- 
cisely the  same  as  the  general  orders.  The  inspector, 
therefore,  instead  of  insisting  upon  something  imprac- 
ticable, can  join  with  the  employer  in  asking  for  a  special 
order  before  proceeding  to  prosecution.  These  "  special 
orders  "  are,  indeed,  one  of  the  most  important  features 
in  the  enforcement  of  the  law.  An  employer,  for  ex- 
ample, is  convinced  that  a  general  order,  say  the  order 
requiring  all  elevators  to  be  covered  by  screens,  is  not 
necessary  in  a  certain  case.  The  inspector  agrees  with 
him.  Instead,  however,  of  leaving  it  to  the  inspector 
to  pass  over  that  case,  he  is  required  to  report  the  viola- 
tion, and  the  employer  can  then  request  the  commission, 
on  a  special  blank  prepared  for  the  purpose,  to  order  a 
special  hearing  by  one  of  its  deputies  and  to  make  a  differ- 
ent order.  In  this  way  the  inspector  is  deprived  of  that 
discretion  which  may  be  abused  and  which  might  come 
very  near  to  corruption,  and  both  the  commission  and 
the  employer  are  protected  against  suspicion  or  abuse 
of  power,  because  the  special  order  is  a  matter  of  pub- 
licity and  public  record,  the  same  as  the  general  order. 
The  law  is  thus  made  elastic  so  as  to  fit  actual  conditions, 
but  the  elasticity  is  open  and  aboveboard,  and  not  a 
matter  of  secret  favor.  If,  now,  the  inspector  is  subject 
to  an  independent  executive,  desirous  of  making  a 
reputation  for  the  enforcement  of  law,  not  only  is  he 
tempted  to  discredit  the  work  of  the  expert  commission, 
but  he  is  under  no  obligation  to  join  with  the  commission 
in  perfecting  its  orders  so  as  to  conform  to  the  rule  of 


INVESTIGATION   AND   ADMINISTRATION    421 

reasonableness.  The  deputies  of  the  Industrial  Commis- 
sion are  continually  reporting  omitted  points  or  imprac- 
ticable applications,  and  the  execution  of  the  law  be- 
comes a  continuous  investigation  and  progress  towards 
reasonableness.  With  separate  departments  for  inves- 
tigation and  execution,  the  investigations  would  doubt- 
less fall  into  the  hands  of  experts  not  familiar  with  the 
great  variety  of  conditions  to  be  met,  and  the  execution 
would  be  that  perfunctory  and  blind  enforcement  which 
has  already  brought  discredit  on  much  of  the  American 
factory  inspection. 

Finally,  the  commissioners  themselves  cannot  divide 
their  work  into  the  separate  fields  of  law,  investigation 
and  execution,  especially  where,  as  with  the  Wisconsin 
commission,  such  a  wide  range  as  fourteen  departments  \  v 
are  brought  together  under  one  head.  Each  commis- 
sioner must  take  his  share  in  the  executive  work  of  dif- 
ferent departments,  and  each  must  carry  on  continually 
the  constructive  investigation  that  the  law  implies.  It 
is  only  by  this  means  of  administration  and  investigation 
combined  in  a  single  commission  that  friction  and  an- 
tagonism between  overlapping  officials  can  be  avoided, 
cooperation  with  employers  and  employees  secured, 
and  obedience  to  the  authority  of  the  judiciary  ob- 
served. 

This  suggestion  that  the  "  expert  "  work  of  the  com- 
mission should  be  separated  from  the  executive  work, 
is  really  based  on  a  misapprehension  of  the  peculiar 
position  occupied  by  the  commissioners.  They  are  not 
"  experts "  in  the  ordinary,  scientific  and  technical 
meaning  of  that  term.  They  are  not  engineers,  physi- 
cians, sanitarians  or  statisticians.  Such  technical  ex- 
perts must  necessarily  be  employed  by  the  commission 


422  LABOR   AND   ADMINISTRATION 

or  persuaded  to  serve  on  its  advisory  committees.  The 
commissioners  occupy  a  middle  position  between  their 
experts,  their  inspectors  and  the  employing  and  em- 
ployed public  on  the  one  hand,  and  the  legislature,  the 
court  and  the  chief  executive  on  the  other.  Their  time 
is  occupied  in  supervising  the  work,  directing  investi- 
gations, explaining  the  laws  and  orders,  listening  to  ap- 
peals, holding  public  hearings,  conducting  prosecutions 
and  so  on.  In  so  far  as  they  are  experts,  their  field  is 
that  of  determining  what  is  the  lawful  or  "  reasonable  " 
thing  to  be  done  under  all  the  circumstances,  rather  than 
the  scientific,  technical,  idealistic  or  popular  thing  to  be 
.done. 

It  is  for  this  reason  that  they  cannot  be  selected 
through  civil  service  examinations,  nor  elected  by  popu- 
lar vote.  The  one  method  might  secure  a  technical 
expert,  the  other  a  political  favorite  or  accident.  Neither 
method  would  secure  that  confidence  in  their  "  reason- 
ableness "  which  is  essential  to  the  position.  At  the 
same  time,  appointment  and  removal  by  the  governor, 
an  officer  whose  position  is  essentially  political,  cannot 
always  be  depended  upon  to  select  and  maintain  a  com- 
mission that  meets  these  requirements.  A  governor, 
elected  as  in  Wisconsin,  through  the  direct  primary 
system,  may  be  expected  to  rely  for  popular  support 
upon  the  high  character  of  his  appointments  rather  than 
upon  the  aid  of  a  political  machine.  But  the  growing 
demand  for  popular  control,  the  impending  adoption 
of  the  initiative,  referendum  and  recall,  give  indications 
that  confidence  in  commissions  will  require  a  more  direct 
power  over  them  on  the  part  of  the  voters.  Appoint- 
ment by  the  governor  offers  that  wide  range  of  selection 
which  neither  civil  service  rules  nor  popular  election 


INVESTIGATION  AND   ADMINISTRATION    423 

provides.  But  recall  by  the  people  is  needed,  both  to 
protect  against  political  influences,  and  to  insure  closer 
responsibility  to  the  people.  This  is  really  the  same  as 
that  responsibility  to  "  prevailing  morality  or  strong 
and  preponderant  opinion  "  of  what  is  "  greatly  and 
immediately  necessary  to  the  public  welfare,"  which 
Justice  Holmes  describes  as  the  basis  and  purpose  of  the 
police  power. 

While  the  Industrial  Commission  is  modelled  after  the 
law  creating  the  Railroad  Commission,  its  field  is  widely 
different .  The  Railroad  Commission  regulates  monopoly ; 
the  Industrial  Commission  regulates  competition.  It 
endeavors  to  enforce  "  reasonable  "  competition  in  so 
far  as  dealings  with  employers  are  concerned,  by  raising 
the  level  of  labor  competition.  The  distinction  offers 
a  practicable  suggestion  for  the  creation  of  a  commission 
by  the  federal  government  for  the  regulation  of  "  trusts." 
Such  a  commission  need  not  have  the  power  to  regulate 
prices,  as  the  Railroad  Commission  does,  on  the  theory 
that  monopoly  is  inevitable,  nor  to  give  special  privileges 
to  so-called  "  good  "  trusts  that  accept  federal  incor- 
poration or  federal  license,  and  agree  to  abide  by  the 
commission's  orders.  Rather  should  a  federal  commis- 
sion be  a  "  fair  trade  "  commission,  controlling  all  inter- 
state trade  so  far  as  necessary,  for  the  purpose  of  inves- 
tigating and  prohibiting  all  kinds  of  "  unfair  competi- 
tion." It  would  take  the  place  which  the  federal  courts 
now  assume,  of  dissolving  and  regulating  corporations. 
But  instead  of  committing  this  power  to  lawyers  it 
would  be  committed  to  a  body  of  men  representing  the 
everyday  life  of  all  the  people,  equipped  to  conduct 
constructive  investigations,  to  prosecute  for  violations 
of  the  anti-trust  laws,  to  prescribe  and  enforce  rules  of 


424  LABOR  AND   ADMINISTRATION 

reasonable  competition  and   so   to   raise   the  level  of 
business  competition.1 

XA  bill  creating  a  "market  commission"  was  introduced  at  the  in- 
stance of  Governor  McGovern  at  the  session  of  the  Wisconsin  legislature 
of  1913,  carrying  with  it,  among  other  things,  the  rule  of  fair  competition 
in  price-making. 


INDEX 


Abolition,  30,  31. 

Administration,  constructive  research,  9, 
10 ;  functions  of,  394. 

Advisors,  Wisconsin  Industrial  Commis- 
sion, 405-8. 

Agrarianism,  36  ff. 

Agricultural  colleges,  10. 

Amalgamated  Association  of  Iron,  Steel, 
and  Tin  Workers,  348. 

Amalgamated  Association  of  Street  Rail- 
way Employees,  334-5. 

American  Federation  of  Labor,  278-9, 
337- 

American  Federation  of  Musicians,  299, 
302,  312. 

Anthracite  Coal  Strike  Commission,  93. 

Anti-phosphorus  Match  Law,  357. 

Appeal  Boards  in  Australasia,  113. 

Apprenticeship,  65,  76-77,  256  ff.,  365  ff.  ; 
in  English  trade  unions,  86;  stove 
moulders,  139;  trade  unions,  123. 

Arbitration,  106—7,  I46;  of  grievances 
in  trade  agreements,  93,  94. 

Army  and  Marine  Bands,  musicians' 
unions,  316-7. 

Arts  and  Crafts,  371. 

Aschenbroedel  Club,  302-4. 

Associationists,  136.  (See  "Socialism," 
"  Fourierism.") 

Australia,  labor  excise  tariff,  354;  Labor 
Party,  81. 

B 

Baer,    anthracite    railroad    spokesman, 

cited,  63. 
Bakery    Workmen,    hours    and    wages, 

338-9. 

Bank,  U.  S.,  29. 

Banks    and    Merchant-Capitalist,    243. 
Benefits,  union,  228. 
Bill  of  Rights,  1 6,  56,  60. 
Black  List,  musicians'  union,  309. 


Boards  of  Conciliation,  93,  94. 

Boiler  Makers,  hours  and  wages,  341-2. 

Bonus  System,  143  ff. 

Boot  and  Shoe  Workers'  Union,  220,  258. 

Bossuet,  court  preacher,  62. 

Boston  Symphony  Orchestra,  open  shop, 

309-10. 

Bovay,  Alvan  E.,  45. 
Boycott,  156-7. 
Brewery   Workmen,   hours   and   wages, 

342-3. 
Brick  Layers,  hours,  343-4;  restrictions, 

134 ;  wages,  152,  343-4. 
Brisbane,  Albert,  35. 
British  Unions,  149  ff. ;  boycott,  156—7 ; 

benefit  features,  103 ;    protection,  87. 
Brook  Farm,  35. 

Brotherhood  of  Railway  Trainmen,  337. 
Biicher,  cited,  222-3;    theory  of  indus- 
trial evolution,  259  ff. 
Building  Laborers,  wages,  331. 
Building    Trades,     closed    shop,     126; 

hours,  344-5 ;  restrictions,  130 ;  wages, 

344-5- 


Campaign  Contribution,  166-7. 

Capital  Punishment,  29. 

Carey,  Matthew,  350-7. 

Carnegie,  A.,  cited,  324. 

Child    Labor,    musicians'    union,    315; 

National  Child  Labor  Committee,  352 ; 

protective  tariff,  353. 
Child  Welfare,  Milwaukee,  212. 
Chinese  Exclusion  Act,  86. 
Chinese  Labor,  257. 
Cigar- making  Machine,  127-8. 
Citizenship,  2. 
Civil  Service,  78,  149,  163  ff.,  176,  402  ff., 

420;  and  wages,  133. 
Class  Competition,  60. 
Class   Conflict,   71   ff . ;    apprenticeship, 

76,   77 ;    direct  legislation,   82 ;    civil 

service,    78;     immigration,    78,    79; 


425 


426 


INDEX 


politics,  79,  80  ff. ;  promotion  of 
employees,  76,  77,  78;  the  public, 
81-84;  salaried  political  jobs,  78; 
socialism,  80,  84 ;  trade  unions,  1 24-5 ; 
tariff  legislation,  83 ;  trial  by  jury,  82  ; 
women's  labor,  78. 

Class  Consciousness,  33,  53  ff. 

Class  Motives,  52. 

Class  Partnership,  51  ff. 

Class  Representation,  55,  66. 

Class  Struggle,  53  ff. ;  condition  of 
progress,  67. 

Closed  Association  of  Employers,  musi- 
cians, 310. 

Closed  Shop,  95,  99, 125-9,  227 ;  building 
trades,  101 ;  clothing  industry,  101, 
102 ;  contracts,  307 ;  high  wages,  88 ; 
immigration,  151-3;  'longshoremen, 
294;  musicians'  union,  307-13; 
public  employees,  107;  sentimental 
argument  for,  96,  100,  108;  street 
railways,  99.  (See  also  "  Union  Shop. ") 

Clothing  Trades,  restrictions,  130. 

Coal-handlers'  Union,  276,  286. 

Commission  Government,  170. 

Commodity  Theory  of  Labor,  142. 

Communism,  26,  40,  85. 

Company  of  Shoemakers,  Boston,  1648, 
guild  charter,  205  ff. 

Competition,  409;  levels  of,  246  ff.,  251 ; 
regulation  of,  420. 

Competitive  Menace,  internal  and  ex- 
ternal, 261. 

Compromise,  59;  candidates,  57. 

Compulsory  Education,  370  ff. 

Conspiracy  Laws,  87,  88,  156. 

Conspiracy  Trials,  prior  to  1842,  219; 
shoemakers,  227  ff. 

Constitutional  Government,  representa- 
tion of  interest  56. 

Constructive  Investigation,  393  ff., 
405- 

Continuation  Schools,  Wisconsin,  372  ff. 

Contractors.  (See  "Employers'  Func- 
tions, Musicians'  Leaders.") 

Contracts,     musicians'     union,     307-9. 

Convict  Labor,  244. 

Cooperation,  and  Trade  Unions,  123, 
136,  242;  stove  moulders,  138-9; 
South  Metropolitan  Co.,  191. 

Coopers,  colonial  guild,  221. 

Co-partnership,  South  Metropolitan  Co., 
182-3. 


Corporations  and  Politics,  160  ff. 

Cost  Keeping,  9,  15,  16;   trusts,  73,  74; 

Milwaukee,  211. 
Cost  of  Living,  14. 

Craig,  judging  live  stock,  cited,  23,  24. 
Custom-order  Market,  230  ff. 


D 


Democratic  Party,  45. 

Discrimination,   protection   against,   93, 

94. 
Distribution  of  Wealth  and  Restriction, 

121. 
Division  of  Labor,  73,  329;   speed,  131; 

and  wages,  127-9. 
Dock  Managers,  285,  294. 
Dredge  Workers'  Association,  288-9. 


Economic  Interpretation  of  History,  127. 

Education,  equal,  37. 

Efficiency,  American  and  British  labor, 
134 ;  of  labor,  73,  74 ;  in  public  employ- 
ment, 107-16;  standardization,  16; 
unions,  135  ff. 

Employer,  function,  121,  224  ff. ; 
sweatshop  boss,  244  ff. 

Employers'  Association,  76;  contrasted 
with  manufacturers'  association,  228 
ff. ;  and  union  shop,  91. 

Employers'  Liability,  388. 

Employment  Offices,  358  ff. ;  Milwaukee, 
363-4;  Wisconsin,  391,  4*4-5- 

England,  public  employment,  114. 

Epicurean  Ethics,  4. 

Esthetics,  i ;  ideals,  5. 

Ethics,  i ;  ideals,  4 ;  epicurean,  4 ; 
stoic,  4. 

Evans,  George  Henry,  37  ff.  (See 
" Workingman's  Advocate.") 

Experimentation,  10,  n. 

Experts,  15,  401  ff. 

Extension  of  Market,  219  ff. 


Factory  System,  371-2;  introduction  of, 

255  ff . ;   quality  of  work,  257. 
Fawcett,  class  economist,  68. 
Federal  System  of  Government,  153-6. 
Fines,     for     employing     non-unionists, 


INDEX 


427 


278-80;  for  not  joining  employers' 
association,  281. 

Firemen's  Union,  283. 

Fourierism,  35,  36,  40. 

France,  labor  legislation,  383. 

Free  Land,  150-1. 

Free  Soil  Party,  45. 

Freight  Rates,  at  lake  ports,  282 ;  Pitts- 
burgh, 326. 


General  Federation  of  Labor,  Great 
Britain,  154-6. 

Germany,  boycott,  157 ;  experts,  403 ; 
public  employment,  114. 

Glasgow,  congestion  of  population,  14; 
municipal  ownership,  162. 

Glass  Industry,  hours  of  labor,  352. 

Grain  Scoopers'  Union,  277,  283. 

Great  Britain,  Labor  Party,  81. 

Great  Lakes  Towing  Co.,  285. 

Greeley,  Horace,  26  ff. ;  85,  351. 

Grow,  Galusha  A.,  Father  of  the  Republi- 
can Party,  45. 

Guilds,  colonial,  219,  221  fif.,  265; 
European,  260  ff . ;  opposed  by  Adam 
Smith,  65 ;  representation  of,  56  ff. 


H 


Hadley,  A.  H.,  51  ff. 

Hanna  &  Co.,  285. 

History,  idealistic  Interpretation,  25  ff. 

Homestead  Exemption,  43  ff. 

Homestead  Movement,  38  ff . 

Homestead  Strike,  140,  324,  348,  352. 

Hours  of  Labor,  34,  46,  47,  352;   leisure 

2 ;     'longshoremen,    294 ;     musicians, 

318-22;  opportunity  for  education,  3; 

public  employment,   restriction,    134; 

trusts,  81. 

Housing.     (See  "Tenements.") 
Humanitarianism,  33. 
Hygienist,  16. 

I 

Immigration,  78,  79;  'longshoremen, 
295;  musicians,  317;  standard  of 
living,  86 ;  strikes,  86 ;  trade  agree- 
ments, 295  ;  trade  unions,  T5i~3  ; 
wages,  330  ff. 

Industrial  Congress  of  1845,  43,  46,  47. 

Industrial    Commission    of    Wisconsin, 


382    ff. ;     employment    offices,    358, 

361. 
Industrial  Education,   363   ff. ;    unions, 

123. 

Industrial  Psychology,  74,  131,  14.2. 
Industrial  Stages,  table  of,  220. 
Initiation  Fees,  295. 
Injunction,  79. 
International      Transport      Federation, 

London,  296. 

Interstate  Competition,  353. 
Itinerant  Craftsmen,  222  ff. 


Jackson,  Andrew,  29,  38,  150. 
Jefferson,  Thomas,  26. 
Journeyman,  function,  224  ff. 
Judiciary,     153-4  '>      eighteenth-century 
philosophy,    395;    investigations,    12. 


Keefe,  D.  C.,  'longshoremen's  union,  268. 
Kelly,  congressman,  351. 
Kelly,  Florence,  quoted,  351. 
King,  class  representative,  55  ff. 
Knights  of  Labor,  298;  legislation,  154; 

in  New  York  City,   Street  Cleaning 

Department,  109-14. 
Knights  of  St.  Crispin,  220,  256,  258. 


Labor  Department,  organization  of,  385. 
Labor   Exchange,    358    ff. ;    musicians' 

union,  300,  301. 
Labor  Legislation,  382  ff. ;  beginnings  of, 

!53-4;   in  France,  383;   in  republican 

states,  49;   uniformity  of,  154. 
Labor  Lobby,  390. 
Labor  Mobility,  327-8. 
Labor  Party  in  Australia,  81 ;   in  Great 

Britain,  81. 
Labor      Politicians,      169-70;      172-3, 

181-2. 
Lake  Carriers'  Association,  283,  284,  285, 

286. 

Lake  Seamen's  Union,  283. 
Land  Limitation,  43  ff. 
Leaders,  musicians'  union,  300  ff. 
Legislation,  investigation,  12. 
Leisure,  2,  4. 


428 


INDEX 


Lescohier,  D.  D.,  cited,  257. 

Lloyd,  Henry  D.,  labor  advocate,  150. 

Locomotive  Engineers  and  Bonus  System, 

i43  ff. 

London,  tenements,  14. 

'Longshoremen,  96,  267  ff. ;  contracts, 
289-92 ;  dues  and  taxes,  293 ;  strikes, 
290-2;  wages,  282;  wages  at 
Pittsburgh,  333. 

Lumber-carriers'  Association,  277,  278, 
279,  280,  281,  282 ;  penalties  on  non- 
members,  281-2. 

Lumber-handling  System,  268. 

Lumber-handling  Unions,  cooperation, 
269;  difficulties  of,  269,  270,  274. 


M 


Machine    Hands    and    Apprenticeship, 

365  ff. 
Machinery,     monotonous     labor,     365; 

wages,  127-9,  274-5,  276,  287. 
Machinery  Theory  of  Labor,  142. 
Machinists,  bonus  system,  144;  hours 

and  wages,  340-1;  restrictions,  128-9. 
"Making  Work,"  128,  322-3. 
Manchester  Tramway  Union,  115,  177-8. 
Manufacturers'    Association,    contrasted 

with   employers'    association,    228   ff. 
Marine  Cooks  and  Stewards,  283. 
Marine    Engineers'    Beneficial    Associa- 
tion, 283.. 
Marine     Firemen,     Oilers'    and    Water 

Tenders'      Benevolent      Association, 

288-9,  292. 

Markets,  extension  of,  221  ff. 
Marx,    theory    of    industrial    evolution, 

259  ff- 

Masquerier,  Lewis,  40. 

Master,  function,  224  ff.  (See  "Em- 
ployer.") 

Masters'  and  Pilots'  Association, 
283-4^ 

Materialism,  i,  6. 

Merchant,  function,  223  ff. 

Merchant-Capitalist,  241  ff. 

Mill,  James,  class  economist,  68. 

Miller,  Owen,  musicians'  union,  299. 

Milwaukee  Socialists,  195  ff. 

Mine  Workers,  restrictions,  129;  hours 
and  wages,  346-9. 

Minimum  Wage,  141 ;  compared  with 
minimum  quality,  232;  in  public 


employment,  184,  187,  192;  in  musi- 
cians' union,  314,  315. 

Mobility  of  Labor,  327-8,  369. 

Moore,  Ely,  first  labor  politician,  149-50. 

Mormons,  26. 

Moulders,  hours  and  wages,  341. 

Municipal  Efficiency,  195  ff. 

Municipal  Employers'  Association,  116— 
8,  i74,  ff- 

Municipal  Ownership,  158  ff. 

Municipal  Reference  Library,  Milwaukee, 
215. 

Musicians,  state  regulation,  314. 

Musicians'  Mutual  Benefit  Association, 
St.  Louis,  302. 

Musicians'  Mutual  Protective  Union, 
New  York,  299 ;  charter,  305-6. 

Musicians'  Union,  297  ff. ;  army  and 
navy  bands,  316-317 ;  child  labor,  315 ; 
closed  shop,  300  ff. ;  313 ;  competition 
of  leaders,  311;  cooperative  bands, 
315-6;  dues,  312;  immigration,  317; 
leaders,  311;  membership,  313; 
minimum  wages,  314,  315,  317; 
rebates,  308;  travelling  leaders,  309- 
10 ;  travelling  orchestras,  310. 

N 

National  Association  of  Manufacturers 

and  Tariff  Commission,  357. 
National  Erectors'  Association,  345. 
National  League  of  Musicians,  297,  298, 

299. 

National  Reformers,  40  ff. 
National  Trades'  Union,  1834,  39. 
Natural  Rights,  39,  50. 
Natural  Selection,  63. 
New  England  Workingmen's  Association, 

41. 
New    Hampshire,    first    ten-hour    law, 

47. 

Newsboys,  Milwaukee,  415-6. 
New  South  Wales,  appeal  boards,  113. 
Newspaper  Publishers'   Association,  96. 
New  York,  land  limitation,  43. 
New  Zealand,  appeal  boards,  113. 
Non-unionists,  92  ff. 


Occupants,  score  card,  23. 

Old  Age,  civil  service  and  restrictions,  133. 


INDEX 


429 


Open  Shop,  80 ;  agreements,  94 ;  Boston 
Symphony  Orchestra,  309-10;  immi- 
gration, 102 ;  public  employment, 
185-6;  on  railways,  98,  99. 

Ore  Shovellers'  Union,  272,  273,  286. 

Owen,  Robert,  26. 


Paine,  Thomas,  26. 

Panic  of  1837,  29. 

Parliament,  representation  of  interests, 

55  ff- 

Patriotism,  53  ff . 
Pattern    Makers,    wages,    341 ;    hours, 

Phalanx,  26,  36. 

Physician,  16. 

Piece  Work  and  Speed,  131;  price 
cutting,  131-2. 

Pilots'  and  Mates'  Unions,  284. 

Pittsburgh,  housing,  14;  resources,  324- 
7 ;  wages,  324  ff. 

Plasterers,  hours  and  wages,  344. 

Political  boss,  57. 

Political  Economists,  51  ff. 

Political  Economy,  science,  8;  teaching, 
22,  24. 

Politics,  40  ff.,  79,  155-6,  262 ;  in  1829, 
149;  municipal,  158  ff. ;  public  em- 
ployment, 112-3;  wages,  331. 

Pottery,  restrictions,  130. 

Preferential  Union  Shop,  90. 

Premium  System,  145  ff. 

Price-bargain  and  Wage-bargain,  247  ff. 

Primary  Elections,  166,  420. 

Prison  Labor,  257. 

Production  Engineers,  74,  140  ff.,  145. 

Profit  Sharing,  123. 

Prohibition,  29. 

Promotions,  9;  class  conflicts,  76,  77, 
78. 

Protectionism,  28,  32,  48,  85 ;  trade 
unionism,  122. 

Protective  Organizations,  252  ff. 

Public  Domain.     (See  "  Public  Lands. ") 

Public  Employment,  106  ff. ;  old  age, 
133;  suffrage,  97,  107;  unemploy- 
ment, 177;  unions,  173  ff.,  177; 
wages,  97. 

Public  Lands,  43  ff . 

Public  Opinion,  67. 

Publicity,  12. 


R 


Railroad  Brotherhoods,  open  shop,  125. 

Railroad  Commission,  n,  18. 

Railway  Employees,  hours  and  wages, 
335-7- 

Railroad  Regulation,  reasonableness,  398. 

Real-estate  Dealers  and  Politics,  171. 

Reasonableness,  doctrine  of,  396—7. 

Recall  of  Judges,  395. 

Religion,  2,  33,  34. 

Representation  of  Interests,  55  ff. 

Republican  Party,  26  ff. 

Research,  academic,  agitational,  con- 
structive, 7;  historical,  n. 

Restrictions,  135  ff. ;  output,  120  ff. ; 
in  public  employment,  191 ;  quality  of 
product,  129-30. 

Retail  Clerks,  hours  and  wages,  338. 

Risk  of  Investment,  249  ff. 

Roosevelt,  President,  cited,  63. 


Safety,  definition  of,  387,  400. 

Sailors'  Union,  283. 

Saloon  Keepers  and  Politics,  171. 

Schmoller,  theory  of  industrial  evolu- 
tion, 259  ff. 

School-house,  social  centre  and  employ- 
ment offices,  358  ff. 

Schools,  academic  education,  369  ff. 

Science,  i. 

Score  card,  5  ;  in  agriculture,  17;  house, 
19  ff. 

Seamen's  Union,  268. 

Self-interest,  53  ff. 

Senior,  class  economist,  68. 

Service,  ethical,  4,  6. 

Shoemakers,  219  ff. 

Slavery,  26,  39,  50 ;  Greek,  2 ;  Roman,  2. 

Smith,  Adam,  61,  64,  65,  68,  69. 

Social  Centres  and  Employment  Offices, 
358  ff. 

Social  Engineering,  15. 

Socialism,  32,  33,  85. 

Socialist  Party,  80,  84. 

Socialists,  Milwaukee,  195  ff. 

Social  Survey,  Milwaukee,  203-6. 

Sociology,  1 6 ;  teaching,  22,  24. 

Specialization,  329. 

Speeding  Up,  130-3,  329. 

Spence,  Thomas,  agrarian,  37,  40. 


430 


INDEX 


Standardization,  n;   in  agriculture,  17; 

efficiency,   16;    health,   16;    housing, 

14  ff. ;  of  labor  laws,  386  ff . 
Standard  of  Living,  85,  86,  102. 
State  Federations  of  Labor,  154-6. 
Statistics,  16;  of  class  conflict,  71. 
Steam  Shovel  and  Dredgemen,  288. 
Steel  Industry,  324  ff. ;  hours  and  wages, 

346-9- 

Stevedores,  269,  270,  271,  272. 
Stewart,  Ethelbert,  cited,  226. 
Stoic  Ethics,  4. 
Stove  Moulders,  137  ff. 
Street  Cars,  wages,  334. 
Street  Cleaners'  Union,  New  York  City, 

109-14. 

Street  Trades,  Milwaukee,  415-6. 
Strikes,  85,  86;    in  1825  and  1832,  34; 

funds,  293 ;   immigration,  86 ;   martial 

law,  79 ;  musicians',  303. 
Structural  Iron  Workers,  wages  and  hours, 

345-6. 
Suffrage,   149,    168;    early  parliaments, 

57;   modern,  57;   public  employment, 

97, 107. 
Sweating    System,     in     ore     handling, 

276. 

Sweat-shop  Stage  of  Industry,  245  ff. 
Switchmen's  Union,  337. 
Syndicalism  and  Arbitration,  106-7. 


Taff-Vale  Decision,  155-6. 

Tariff,  labor,  350  ff. ;  permanent  com- 
mission, 357.  (See  "Protection- 
ism.") 

Teamsters,  333 ;  wages,  332. 

Tenements,  model,  14. 

Ten-hour  Day,  34,  46,  47. 

Textile  Industry  and  Protection,  352. 

Trade  Agreements,  91,  136  ff . ;  arbitra- 
tion of  grievances,  93,  94 ;  enforcement 
of,  93 ;  immigration,  295  ;  'longshore- 
men, 277 ;  non-unionists,  91,  92 ; 
open  shop,  104;  politics,  115-6; 
protection,  352. 

Trade  Mark,  264. 

Trade  Unions,  arbitration,  106-7  >  class 
conflict,  124-5;  cooperation,  123-4, 
136;  politics,  86;  production,  135; 
restrictions,  120  ff. ;  strategic  indus- 
tries, 75. 


Trades  Disputes  Act,  156. 

Trades  Union  Congress,  154-6;  public 
employment,  116-8,  174-5. 

Transcendentalism,  19,  35,  48. 

Truck  Payments,  224. 

Trusts,  6 1 ;  class  conflict,  73,  75 ;  con- 
structive research,  9;  strikes,  80; 
trade  unions,  75,  76,  80,  81. 

Tug  Firemen's  Union,  285,  288. 

Tug  Linemen's  Union,  285,  288—9. 

Tug  Men,  licensed  protective  associa- 
tion, 285,  288. 

Typographical  Union,  95;  first  union, 
226;  in  government  printing  office, 
133;  linotype,  127-8,  133;  hours  and 
wages,  339. 


U 


Unemployment,  358  ff. 

Uniform  Accounts,  9,  15. 

Uniform  Freight  Rates,  enforced  by 
'longshoremen,  286. 

Union  Label,  95,  156-7,  264. 

Union  Responsibility,  95. 

Union  Shop,  85  ff.,  107 ;  definitions,  89. 
(See  "Closed  Shop.") 

Unions  in  Public  Employment,  177-8. 

Unitarianism,  35. 

United  States  Bureau  of  Labor,  inves- 
tigations by,  408-9. 

United  States  Steel  Co.,  285. 

University  of  Wisconsin,  i,  6. 

Unjust  Discharge,  93. 

Utilitarian  Idealism,  i. 


Vegetarianism,  28. 

Vocational    Direction    and    Unemploy- 
ment, 360-1. 


W 


Wage-bargain  and  Price-bargain,  247  ff. 

Wage  Contract,  143. 

Wages,  American  and  European,  14; 
day  labor,  330;  dock  workers,  274- 
7 ;  'longshoremen,  294 ;  musicians' 
union,  318-22;  Padroni,  330;  public 
employment,  97,  183-4,  186-7. 

Waring,  Colonel  George  E.,  and  Union  of 
Street  Cleaning  Employees,  98,  109-14. 


INDEX 


431 


Welfare,    15,    148;    in   public   utilities, 

193-4- 

Western  Federation  of  Miners,  78,  79. 
Wheeling,  traction  politics,  163,  166. 
Whigs,  31,  45. 
Wholesale  Market,  233  ff . 
Wisconsin,  land  limitation,  43. 
Women's  Labor,  78. 

Workingman's  Advocate,  cited,  30,  31,  45. 
(See  "George  Henry  Evans.") 


Workingmen's  Party  of  1829,  40,  42. 
Workmen's    Compensation,    Wisconsin, 

393- 
Wright,  Carroll  D.,  93. 


Young  America,  40,  43. 
Henry  Evans.") 


(See   "George 


HPHE    following   pages   contain    advertisements    of 
books  by  the  same  author  or  on  kindred  subjects. 


Races  and  Immigrants  in  America 


BY  JOHN   R.  COMMONS 

University  of  Wisconsin 

Cloth,  izmo,  242  pages,  $1.50  net 

"  The  colonial  race  elements  are  considered,  brief  chapters  are  given  to  the  negro 
and  recent  immigrants,  and  industry,  labor,  city  life,  crime,  poverty,  and  politics  are 
treated  in  their  relation  to  the  maintenance  or  destruction  of  democracy.  Professor 
Commons's  purpose  appears  to  be  to  summarize  the  latest  available  data  upon  his 
subject  and  leave  conclusions  largely  to  the  reader.  In  line  with  this  purpose  is  a 
valuable  list  of  authorities  consulted.  It  is  certain  that  the  book  will  be  of  great 
service  to  ministers,  sociologists,  and  all  who  are  concerned  in  the  problems  of  the 
day." —  Chicago  Interior. 

"  The  work  is  scientific  as  to  method  and  popular  in  style,  and  forms  a  very  use- 
ful handbook  about  the  American  population."  —  Dial. 

"  Well  fortified  throughout  by  statistics,  and  evidencing  a  wide  range  of  observa- 
tion, the  great  merit  of  the  volume  is  its  sensibleness."  —  Nation. 

"  While  not  profound,  it  is  a  brief  and  concise  treatment  of  serious  public  prob- 
lems, and  is  characterized  by  the  good  judgment  and  general  sanity  which  are 
evident  in  Professor  Commons's  works  in  general.  The  general  point  of  view  and 
conclusions  of  the  book  are  undoubtedly  sound,  and  it  will  serve  a  useful  purpose 
in  introducing  to  many  the  serious  study  of  our  racial  and  immigration  problems. 
To  one  who  can  spend  but  a  brief  time  in  reading  along  the  line  of  these  problems, 
but  who  wishes  a  general  survey  of  them  all,  there  is  no  book  that  can  be  more 
heartily  commended.  — CHARLES  A.  ELL  WOOD  in  The  American  Journal  of 
Sociology. 

"  This  is  an  extremely  valuable  study  of  the  greatest  problem  which  the  United 
States  has  to  solve  to-day ;  perhaps  greater  than  that  of  all  the  ages  that  have  pre- 
ceded it,  namely,  the  assimilation  of  large  numbers  of  dissimilar  races  into  a  com- 
posite race.  .  .  .  To-day  in  the  city  of  New  York  sixty-six  different  tongues  are 
spoken.  A  century  hence  there  will  probably  be  only  one.  And  throughout  the 
country  there  are  communities  in  which  the  English  is  not  the  dominant  language. 
But  the  railroad,  the  post  office,  and  the  telegraph,  as  they  bind  them  in  interest, 
will  bind  them  in  speech.  It  is  in  this  view  that  the  book  is  of  inestimable  value." — 
American  Historical  Magazine. 

"  Professor  Commons  has  long  been  a  diligent  and  penetrating  student  of  indus- 
trial conditions  in  this  country,  and  particularly  of  the  labor  movement.  His  inves- 
tigations in  this  latter  field  have  brought  him  face  to  face  with  the  situation  that 
confronts  the  arriving  immigrant,  and  he  has  been  led  to  inquire  into  the  varying 
abilities  of  different  races  to  make  use  of  the  opportunities  presented  in  this  land 
for  their  advancement.  .  .  .  We  do  not  recall  another  book  of  its  size  that  presents 
so  much  important  and  essential  information  on  this  vital  topic."  —  Review  of 
Reviews. 


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Publishers  64-66  Fifth  Avenue  New  York 


By  the  Same  Author 

Proportional  Representation        SECOND  EDITION 

WITH  CHAPTERS  ON  THE  INITIATIVE,  REFERENDUM,  AND 
PRIMARY  ELECTIONS 

Cloth,  I2mo,  $1.25  net 

"  Chief  interest  in  Professor  John  R.  Commons's  new 
edition  of  his  forceful  treatise  on  '  Proportional  Repre- 
sentation '  attaches  to  what  he  has  to  say  concerning  the 
initiative  and  referendum.  .  .  .  Professor  Commons 
takes  a  different  position  from  that  assumed  by  him 
when  his  work  was  first  published  ten  years  ago.  Then 
he  was  distrustful  of  both  measures ;  now,  while  still 
feeling  that  the  initiative  has  not  as  yet  altogether  vin- 
dicated itself,  he  is  inclined  to  view  it  more  favorably 
than  before,  and  he  strongly  indorses  the  referendum  as 
having  proved  a  '  certain  means  of  expelling  corrupt 
wealth  from  politics,'  and  as  being  the  only  complete  and 
specific  cure  for  bribery.  .  .  .  Besides  the  new  chap- 
ters dealing  with  these  measures  of  political  reform  as 
viewed  in  the  experience  of  the  past  decade,  the  present 
edition  contains  additional  material,  all  of  it  highly  in- 
structive, on  the  legalization  of  political  parties,  and 
the  nature  and  requirements  of  municipal  government." 
—  The  Outlook. 

The  Distribution  of  Wealth 

BY  JOHN   R.   COMMONS 

Professor  of  Political  Economy  in  the  University  of  Wisconsin 

Cloth,  i2tno,  258  pages,  $1.25  net 

A  concise  summary  of  the  practical  outcome  of  the 
various  theories  of  distribution. 


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American  Syndicalism  -  -  The  I.  W.  W. 

BY  JOHN  GRAHAM   BROOKS 

Author  of  "  As  Others  See  Us,"  "  The  Social  Unrest,"  etc. 

Cloth,  $1.25  net ;  postpaid,  $1.36 

"  Mr.  Brooks's  book  is  a  careful,  sympathetic,  and  critical  study  of 
American  syndicalism  as  represented  in  the  order  named  the  Industrial 
Workers  of  World. 

The  theory,  or  'philosophy,'  of  this  syndicalism  is  given,  a  review 
made  of  the  practical  experiences  of  the  movement  as  it  has  expressed 
itself  here  in  the  last  few  years,  and  a  view  sought  of  its  possible  destinies 
in  the  United  States.  Mr.  Brooks  says : 

*  In  it  and  through  it  is  something  as  sacred  as  the  best  of  the  great 
dreamers  have  ever  brought  us.  In  the  total  of  this  movement,  the 
deeper,  inner  fact  seems  to  be  its  nearness  to  and  sympathy  with  that 
most  heavy  laden  and  long  enduring  mass  of  common  toilers.  Alike  to  our 
peril  and  to  our  loss  shall  we  ignore  this  fact.'  "  —  New  York  Tribune, 


The  Social  Unrest 

Studies  in  Labor  and  Social  Movements 
BY  JOHN  GRAHAM   BROOKS 

Cloth,  22mo,  394  pages,  $f.j>o  net 

"  The  author,  Mr.  John  Graham  Brooks,  takes  up  and  discusses  through 
nearly  four  hundred  pages  the  economic  significance  of  the  social  questions 
of  the  hour,  the  master  passions  at  work  among  us,  men  versus  machinery, 
and  the  solution  of  our  present  ills  in  a  better  concurrence  than  at  present 
exists  —  an  organization  whereby  every  advantage  of  cheaper  service  and 
cheaper  product  shall  go  direct  to  the  whole  body  of  the  people.  .  .  . 
Nothing  upon  his  subject  so  comprehensive  and  at  the  same  time  popular 
in  treatment  as  this  book  has  been  issued  in  our  country.  It  is  a  volume 
with  live  knowledge  —  not  only  for  workman  but  for  capitalist,  and  the 
student  of  the  body  politic  —  for  every  one  who  lives  —  and  who  does  not  ? 
—  upon  the  product  of  labor." —  The  Outlook. 

Mr.  Bliss  Perry,  the  editor  of  The  Atlantic  Monthly,  says  of  it :  "A 
fascinating  book — to  me  the  clearest,  sanest,  most  helpful  discussion  of 
economic  and  human  problems  I  have  read  for  years." 


THE   MACMILLAN  COMPANY 

Publishers  64-66  Fifth  Avenue  New  York 


The  Theory  of  Social  Revolutions 

BY  BROOKS   ADAMS 

Author  of  "  The  Law  of  Civilization  and  Decay," 
"  The  New  Empire,"  etc. 

Cloth,  ismo,  $1.25  net 

Mr.  Adams,  whose  previous  books  have  revealed  him  as  a  brilliant 
thinker  and  writer,  in  this  volume,  brings  home  to  the  governing 
class  of  this  country  a  sense  of  its  responsibility  as  that  is,  he  be- 
lieves, its  only  hope  of  safety.  Nearly  twenty  years  ago  he  calculated 
that  were  the  progression  to  continue  at  the  same  acceleration,  our 
present  social  system  must  fall  by  or  before  1930 ;  he  now  holds  that 
he  has  seen  no  reason  to  modify  his  opinion.  Whereas  he  has  con- 
fined his  attention  in  the  past  to  some  one  side  of  this  greatest  of 
problems,  the  economic,  the  military,  or  the  geographical,  he  here 
attacks  the  legal.  The  work  is  the  result  of  wide  reading,  experi- 
ence, and  reflection. 

Why  and  Where  Public  Ownership 
Has  Failed 

BY  YVES   GUYOT 

Cloth,  I2mo 

What  have  state  ownership  and  operation  accomplished  in  the 
way  of  tax  and  other  reforms  in  those  cases  where  they  have  been 
tried?  Yves  Guyot,  statesman,  traveler,  editor,  economist,  here 
answers  this  question  in  perhaps  the  most  exhaustive  treatise  thus 
far  published  upon  the  subject.  A  glance  at  a  few  of  the  topics  cov- 
ered is  a  sufficient  index  of  the  comprehensive  character  of  the  work  : 
Municipal  Activity  of  the  United  Kingdom,  The  United  States, 
Germany,  Russia,  France,  Austria-Hungary,  Italy,  Denmark,  Switzer- 
land, Belgium,  Sweden ;  State  Operation  of  Railroads ;  State  and 
Municipal  Bookkeeping  and  Finances  ;  Private  versus  Public  Initia- 
tive; The  Housing  of  the  Working  Class;  State  and  Municipal 
Extravagance;  Political  and  Social  Consequences  of  a  Socialist 
Program. 

THE    MACMILLAN  COMPANY 

Publishers  64-66  Fifth  Avenue  New  York 


BY  SCOTT   NEARING,   PH.D. 

Of  the  Wharton  School,  University  of  Pennsylvania 

Social  Adjustment 

Cloth,  377  pages,  $1.30  net 

"It  is  a  good  book,  and  will  help  any  one  interested  in  the 
study  of  present  social  problems."  —  Christian  Standard. 
"A  clear,  sane  gathering  together  of  the  sociological  dicta  of  to- 
day. Its  range  is  wide  —  education,  wages,  distribution  and 
housing  of  population,  conditions  of  women,  home  decadence, 
tenure  of  working  life  and  causes  of  distress,  child  labor,  unem- 
ployment, and  remedial  methods.  A  capital  reading  book  for 
the  million,  a  text-book  for  church  and  school,  and  a  companion 
for  the  economist  of  the  study  desk."  —  Book  News  Monthly. 

Wages  in  the  United  States 

Cloth,  i2nto,  $1.25  net ;  postpaid,  $1.35 

This  work  represents  an  examination  of  statistics  offered  by  va- 
rious states  and  industries  in  an  effort  to  determine  the  average 
wage  in  the  United  States.  As  a  scholarly  and  yet  simple  state- 
ment it  is  a  valuable  contribution  to  the  study  of  one  side  of  our 
social  organization. 

The  Law  of  the  Employment  of  Labor 

BY   L.   D.   CLARK 

Cloth,  i2mo,  $s.6o  net 

In  all  the  realm  of  economics  it  is  strange  that  heretofore  no 
book  has  been  published  dealing  specifically  and  authoritatively 
with  the  legal  aspects  of  labor.  Mr.  Clark  has  realized  this, 
and  his  book  covers  the  whole  field  of  law  as  it  affects  the  em- 
ployment of  labor  in  the  United  States.  By  the  citation  of  an 
adequate  number  of  representative  cases  and  statutes,  the  prin- 
ciples of  common  law  in  their  most  important  phases  as  well  as 
the  nature  and  trend  of  legislation  are  discussed  and  illustrated 
in  so  far  as  these  are  applicable  to  workmen  and  their  employers. 


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Publishers  64-66  Fifth  Avenue  New  York 


Important  Books  on  Labor  Problems 


ADAMS,  T.  S.,  AND  SUMNER,  H.  L. 

Labor  Problems  cloth,  ismo,  $1.60  net 

BOLEN,  G.  L. 

Getting  a  Living  Cloth,  izmo,  $2.00  net 

CLOPPER,  E.  N. 

Child  Labor  in  the  City  Streets  cloth,  i2mo,  $1.25  net 
ELY,  R.  T. 

The  Labor  Movement  in  America      Cloth,  i2mo,  $1.25  net 

Monopolies  and  Trusts  cloth,  i2mo,  $1.25  net 

Standard  Library,  Cloth,  i2mo,  $0.50  net 

MCLEAN,  A.  M. 

Wage  Earning  Women  Citizens'  Library,  Cloth,  I2mo,  $1.25  net 

NEARING,  S. 

Wages  in  the  United  States  cloth,  i2mo,  $1.25  net 

PORTENAR,    A.    J. 

Organized  Labor:  Its  Problems  and  How  to  Meet 

Them  Cloth,  I2mo,  $1.00  net 

RYAN,  J.  A. 

A  Living  Wage :  Its  Ethical  and  Economical  Aspects 

Cloth,  i2mo,  $1.00  net 
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SALMON,  L.  M. 

Domestic  Service  cloth,  i2mo,  $2.00  net 

THOMPSON,  H. 

From  the  Cotton  Field  to  the  Cotton  Mill 

Cloth,  i2mo,  $1.50  net 
WOMER,    P.    P. 

The  Church  and  the  Labor  Conflict   cloth,  i2mo,  $1.50  net 


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LOAN  DEPT. 


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